Oppenheimer discusses 4Q13 network security market recap
Opco notes, for 4Q13, the overall security appliance market grew to $2.4B or +6.8% YoY. Currently IDC has the overall security market (Firewall/VPN, UTM, IDS/IPS and STAP) growing to $11.8B in 2017. In addition, firm has looked into list prices and believe that ASP trends point to a stable environment (QoQ). Despite the increasing prevalence of virtual and SaaS-based solutions, appliances remain the predominant delivery method of network security solutions. Opco remains positive on CHKP and FTNT, which have significant exposure to these markets. Firm also likes PANW and FEYE, where its Perform rating is mainly valuation-driven.