12 Most Undervalued Cybersecurity Stocks to Buy According to Hedge Funds

9) A10 Networks, Inc. (NYSE:ATEN)

Forward P/E as of November 20: ~18.0x

Number of Hedge Fund Holders: 20

A10 Networks, Inc. (NYSE:ATEN) offers computer networking products and security solutions. It provides controllers, firewalls, protection systems, and other networking products.

Market experts believe that A10 Networks, Inc. (NYSE:ATEN)’s focus on diversification and security-led solutions is expected to continue to drive revenue growth in the near term. The company remains focused on expanding its security offerings and integrating AI capabilities. Furthermore, a cautious approach to capital deployment, together with a focus on strategic M&A opportunities and potential share buybacks, should aid A10 Networks, Inc. (NYSE:ATEN) in the upcoming quarters.

Security-led revenue accounted for 63% of total revenue in Q3 2024, exhibiting A10 Networks, Inc. (NYSE:ATEN)’s continued evolution to a cybersecurity-focused organization that leverages AI tools to benefit customers. The company has also aligned its cost structure to enable consistent profitability despite macro uncertainty. It also remains focused on delivering increased operating leverage. From the security-led business, A10 Networks, Inc. (NYSE:ATEN) expects growth in the range of 10% – 12% moving forward.

Overall, the company remains focused on adding new AI-based capabilities and harnessing machine learning to better identify and mitigate threats.

BWS Financial upped its price target on the shares of A10 Networks, Inc. (NYSE:ATEN) from $17.00 to $24.00, giving a “Buy” rating on 13^th November.