Shares of Watchguard Technologies (Nasdaq: WGRD), an Internet security solutions provider that serves small and medium-sized businesses, soared 15.7 percent on Tuesday, gaining 9-1/2 to 70. The rise came after Credit Suisse First Boston initiated coverage on Watchguard with a strong buy rating and a $90 price target.
A large majority of online businesses — especially the ones that Watchguard targets — are not currently using any existing security solution. Watchguard is poised to benefit greatly from the Internet’s increased focus on security. The hacker attacks that brought down Yahoo!, Amazon.com, Buy.com and others raised the awareness of companies like Watchguard, and the stock has soared in the wake of the attacks.
Watchguard’s stock has recovered dramatically since the company went public at $13 a share in July. The stock traded as low as 10-1/8 last year.