The announcement of a £3bn agreed takeover of cybersecurity firm Sophos has been a shot in the arm for a sub-sector of the stock market which has been relatively under-appreciated given the almost daily news regarding hacking and other cyber nasties.
By Zak Mir
It has also underlined the value of what cybersecurity solutions group Shearwater has been building of late. It is also timely given that the Sophos announcement comes in the wake of last week’s news that Shearwater’s subsidiary Brookcourt Solutions has won a £8.5m contract with a FTSE 100 telecommunications group.
Indeed, it would appear that after a slow reaction in the wake of Thursday’s news, shares of Shearwater are starting to respond. Indeed, they have pushed towards the main resistance line on the daily chart from May at 198p. An end of day / weekly close this week should be enough to snap the 5 month downtrend in the stock and leave the way open for a rally as high as the main 2019 resistance 300p plus. This could happen as soon as the end of the year, especially while there is no break below the late September peak at 180p.
