HUB Cyber Safety (Israel) Ltd. (NASDAQ: HUBC) is an Israeli cybersecurity firm specializing in defending confidential business and authorities knowledge. The corporate was established in 2017 by veterans of the 8200 and 81 elite intelligence items of the Israeli Intelligence Corps unit. These items concentrate on code decryption, counterintelligence, cyberwarfare, army intelligence, and surveillance. Following its disappointing IPO on March 1st, HUBC inventory ran 132% to a excessive of $3.10 earlier than giving up a few of its features. Whereas its latest momentum makes HUBC one to observe, its edge within the confidential computing {industry} might make it one of many cybersecurity shares on the rise.
HUBC Inventory Information
It’s price noting the similarities between HUBC and one other main Israeli cybersecurity firm – CyberArk Software program Ltd. (NASDAQ: CYBR). CYBR’s know-how gave it an edge within the identification safety market and its inventory at the moment trades at greater than $145 per share partly because of this first-mover benefit.
On condition that HUBC’s know-how has the potential to revolutionize the cybersecurity {industry}, HUBC inventory might respect over the approaching years because it penetrates the US market. The corporate is getting ready for an internet buyers occasion on March twenty eighth and its administration might share updates with buyers on the corporate’s new technique as a publicly listed US firm.
Revolutionizing The Trade
Hundreds of thousands of confidential information have been stolen, held ransom, or uncovered each day attributable to present cybersecurity methods’ flaws. Most cybersecurity methods provide knowledge safety for when knowledge is saved on a tough drive or in transit similar to despatched by electronic mail. This leaves confidential knowledge uncovered to potential cyberattacks when the information is utilized by the pc’s reminiscence and CPU. HUBC might present the primary service which tackles this ignored cybersecurity challenge because of confidential computing and its HUB Silicon Chip.
Confidential Computing
Confidential computing is essentially the most revolutionary strategy to cybersecurity spearheading a $54 billion market with an aggressive 90%-95% CAGR. Basically, confidential computing retains knowledge encrypted in a safe atmosphere whereas it’s getting used or processed by purposes.
HUBC has already made a notable impression on this profitable {industry} as a member of the Confidential Computing Consortium (CCC) which incorporates corporations like Meta, Microsoft, Huawei, Intel, Nvidia, AMD, and most significantly Google. The consortium is devoted to defining and accelerating the adoption of confidential computing by bringing collectively {hardware} distributors, cloud suppliers, and software program builders to attain this widespread aim.
One other bullish signal for buyers is HUBC’s work with Google to create an answer for securing knowledge on Google Cloud utilizing HUBC’s core applied sciences. Cloud storage has attracted plenty of prospects attributable to its low price and suppleness of cloud processing and storage. However as attractive as cloud storage could be, it could possibly come on the value of the privateness and safety of shoppers’ knowledge. Many cloud suppliers tried to unravel this challenge utilizing knowledge encryption processes, however this strategy isn’t excellent since prospects are liable for defending their encryption keys – placing the information in peril of leaks.
To unravel this drawback HUBC used the CCC’s confidential computing know-how to beat inherent cloud weaknesses by making a safe atmosphere for the creation and distribution of those keys. Nevertheless, this methodology of confidential computing mainly advantages high-volume cloud customers.
Working to create an easy-to-scale, high-fidelity answer for each small and huge organizations, HUBC is planning to capitalize on the untapped market of organizations working in closely regulated industries like finance, insurance coverage, and healthcare. Since these companies have but to learn from cloud benefits because of the safety dangers, HUBC might turn out to be the go-to cybersecurity supplier for these industries. In that approach, HUBC could possibly be one of the vital promising cybersecurity shares to purchase at present ranges.
HUB Silicon Chip
Whereas HUB Safety affords cybersecurity options by way of quite a lot of merchandise similar to its PCI Card Module and 48U Powerhouse Enterprise Server Module, the corporate’s silicon chip for low-powered IoT units is a product launch buyers ought to look ahead to.
At the moment, within the superior stage of improvement, HUB Silicon is HUBC’s next-generation system placing all of HUBC’s cybersecurity performance on a silicon chip. A single HUB Silicon chip sits instantly on the motherboard of community elements and can present each the processing energy and cybersecurity for community units.
HUBC anticipates that HUB Silicon shall be put in on an OEM foundation by gear producers and can turn out to be an industry-standard cybersecurity answer supplied by element producers.
Described as “cybersecurity on a chip”, HUB Silicon has the potential to revolutionize the cybersecurity panorama and its launch could possibly be a catalyst for the HUBC inventory value. Because of this, HUBC could possibly be one of many cybersecurity shares to observe carefully this 12 months.
Similarities with CYBR
In some ways, HUBC could possibly be on monitor to comply with within the footsteps of CyberArk Software program Ltd. which launched a first-of-its-kind identification safety product in 2014.
This product was revolutionary for the cybersecurity {industry} as a result of identification safety secures all identities of a given group by assuming that any identification could be compromised underneath sure circumstances and create potential threats to a corporation’s most beneficial property. This product was a large catalyst for CYBR at its IPO in 2014.
Whereas CYBR inventory IPO’ed at $16 per share on the time, its inventory value appreciated as its income development accelerated from $66.1 million to $102.9 million with its US enlargement in 2014 to $592 million final 12 months. Because of this spectacular development, CYBR inventory is now thought of one of the vital worthwhile cybersecurity shares.
Equally, HUBC is concentrating on the USA which might result in larger income development within the coming years since HUBC generated 98% of its revenues from Europe, the Center East, and Africa, and solely 2% of its revenues from america in 2021. By itemizing on the NASDAQ, HUBC is in a greater place to develop its presence within the US market – pushing it in the direction of its aim of $712 million in income by 2026.
If HUBC is ready to acquire market share within the US with these merchandise, it might in the future turn out to be a significant participant within the cybersecurity market like CYBR.
Ark Make investments CEO – Cathie Woods – might see the identical potential in HUBC because the ARK Israel Revolutionary Know-how ETF (IZRL) at the moment consists of 355,241 shares of HUBC making up .71% of the ETF’s holdings. Apparently, this identical ETF holds 17,984 shares of CYBR as nicely. Contemplating this funding and HUBC’s upcoming investor occasion, HUBC could possibly be one of many cybersecurity shares to observe this week.
Upcoming Investor Occasion
HUBC plans to host an internet investor occasion on March 28, 2023, at 10 a.m. EST. The occasion shall be led by HUBC’s CEO – Uzi Moskovich – and different members of the corporate’s administration staff. Throughout the occasion, these firm insiders will talk about the corporate’s enterprise progress, new developments, imaginative and prescient, and strategic plans. On condition that the corporate might share some vital updates at this occasion, HUBC could possibly be one of many cybersecurity shares to observe carefully.
HUBC Inventory Financials
HUBC introduced that it was anticipating $115 million in revenues in 2022 throughout its newest investor presentation. HUBC is anticipating to realize over $175 million in income this 12 months and $20+ million EBITDA. HUBC can be anticipating $712 million in revenues in 2026 and development of their gross margin from 32% in 2022 to 63% in 2026.
@Retro1upArmy is speculating HUBC’s upcoming buyers’ occasion could possibly be the explanation for Cathie Wooden rising its holdings within the firm.
@MaryMichelleNay is bullish on HUBC’s prospects because of the rising protection cybersecurity market.
Technical Evaluation
HUBC inventory not too long ago broke by way of its $1.89 help and is buying and selling beneath the 21 and 50 MAs on the hourly. Given buyers’ trepidation in the direction of SPACs, it isn’t shocking HUBC inventory fell to an all-time low of $1.12 proper after its IPO.
HUBC made a brand new excessive at $3.10 after saying its collaboration with Google for a cloud safety and knowledge privateness answer for Google Cloud. If the corporate releases new updates relating to this undertaking at its investor day occasion, then the inventory might spike up once more on the information.
HUBC is at the moment buying and selling in a sideways channel and the RSI is impartial at 35. As is, the inventory might proceed to fall towards its help at $1.75 with out one other catalyst to drive momentum. Buying and selling quantity has continued to drop off since March seventeenth however the buyers’ occasion might assist deliver quantity again to the inventory.
A attainable play can be to take a place on the breakout and retest above the $1.89 resistance. Merchants might take revenue on the 21 MA, 50 MA, and $2.21 resistance with a cease loss on the 1.75 help.
HUBC Inventory Forecast
The HUBC inventory forecast seems promising as the corporate’s profitable SPAC itemizing on the NASDAQ has already elevated buyers’ curiosity within the cybersecurity firm. With its buyers’ occasion on March twenty eighth and Ark Invests’ latest funding within the firm, HUBC inventory might proceed to realize momentum relying on what information is launched on the firm’s occasion.
However within the long-term, HUBC’s variety of prospects might enhance as it really works to capitalize on the US market. Contemplating that HUBC already has 1500 prospects, the corporate seems on monitor to realize extra market share this 12 months as nicely. Its working relationship with Google on its Google Cloud safety and membership within the Confidential Computing Consortium put HUBC on the forefront of the $54 billion confidential computing market. The discharge of its HUB silicon chip shall be one other catalyst to observe for this cybersecurity inventory as the corporate works in the direction of its 2026 aim of $712 million in income. In mild of those catalysts, HUBC could possibly be top-of-the-line cybersecurity shares to carry onto for the long run.
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