Corero Network Security (LON:CNS) has received an encouraging assessment from Canaccord Genuity, with the broker upgrading its financial forecasts and increasing its share price target following strong first-half trading, market share gains and two significant Tier 1 telecommunications customer wins.
In its research note dated 9 September 2026, Canaccord Genuity raises its target price for Corero from 20p to 21p while maintaining its BUY recommendation.
The broker highlights improving commercial momentum, stronger profitability and opportunities for further expansion as Corero establishes itself as a credible challenger in the global Distributed Denial of Service (DDoS) protection market.
Strong first-half performance supports upgraded forecasts
Corero’s performance during the first six months of 2026 provides the foundation for Canaccord’s improved outlook.
Revenue increased by 42% year on year, accelerating from the 18% growth recorded during the second half of 2025. The improvement reflects a recovery in upfront software licence and appliance sales, alongside continued growth in recurring revenues.
Importantly, the company has also demonstrated stronger operating profitability, supported by higher gross margins and disciplined cost management.
Corero H1 2026 financial and operational highlights
- Revenue growth: Increased 42% year on year, demonstrating accelerating commercial momentum.
- Recurring revenue: Rose 38%, contributing approximately two-thirds of total revenue.
- Software licences and appliances: Upfront sales increased 66% compared with the previous year.
- Annual recurring revenue (ARR): Reached $24.1 million, representing 12% annual growth.
- Order intake: Increased 14% to $14.3 million.
- Gross margin: Expanded to 93.4%, benefiting from a greater proportion of software sales.
- Adjusted EBITDA: Reached $2.7 million, supported by operating cost discipline.
- Adjusted EBIT: Improved to $1.5 million, representing a margin of approximately 10%.
- Net cash: Stood at $2.1 million at the half-year stage.
Although free cash flow remained negative at $2.2 million, Canaccord anticipates an improvement during the second half, similar to the pattern experienced in the previous year.
Corero outperforming established cybersecurity competitors
One of the more notable findings in Canaccord’s research is Corero’s growth relative to larger competitors.
The broker compares Corero with established DDoS protection providers Radware, NetScout and A10 Networks.
While these competitors have recorded revenue growth of approximately 4% to 10%, Corero delivered 42% growth in the first half of 2026 and approximately 30% growth on a rolling 12-month basis.
This difference suggests Corero is successfully gaining market share despite competing against considerably larger businesses.
Canaccord estimates that the three established competitors collectively generate approximately $1 billion in annual revenue, illustrating the potential opportunity available to smaller providers capable of winning customers from incumbent suppliers.
The wider market also offers a favourable backdrop. Research referenced by Canaccord projects that the global DDoS protection market could grow from approximately $4.7 billion in 2025 to $10.3 billion by 2031.
Tier 1 telecommunications wins mark an important development
Corero’s recent success in securing two Tier 1 telecommunications customers, one in the United States and another in the United Kingdom, represents an important step in its commercial development.
Historically, the company has concentrated largely on smaller Tier 2 and Tier 3 telecommunications, internet and cloud service providers.
Winning business with larger operators suggests that Corero’s SmartWall technology and managed security services are increasingly being considered for more demanding network environments.
Canaccord also identifies potential expansion opportunities within both new contracts.
In the UK, telecommunications security regulations and a March 2027 compliance deadline could provide additional opportunities for Corero’s Edinburgh-based managed security offering.
The broker believes these developments could support further customer wins, although the timing and scale of additional contracts remain uncertain.
Canaccord raises revenue and profit expectations
Reflecting the stronger first-half performance and recent contract wins, Canaccord has increased its revenue forecasts by approximately 8% to 10% across its forecast period.
Lead analyst Kai Korschelt, alongside fellow analysts Hayley Palmer and Tom Like, writes:
“We lift forecasts to reflect the strong first half and recent wins”
The upgraded forecasts include:
- 2026 revenue: $31.9 million, increased from the previous estimate of $29.0 million.
- 2027 revenue: $35.1 million, compared with the previous $32.5 million forecast.
- 2028 revenue: $38.4 million, up from $35.4 million.
- 2026 adjusted EBITDA: $5.3 million, increased from $3.1 million.
- 2027 adjusted EBITDA: $5.7 million, compared with the previous $4.2 million estimate.
- 2028 adjusted EBITDA: $6.6 million, up from $5.2 million.
Canaccord now forecasts a compound annual revenue growth rate of approximately 15% between 2025 and 2028.
The broker also expects improving cash generation and growing net cash balances over the forecast period.
Valuation supports Canaccord’s 21p target price
Despite the stronger operating performance, Canaccord considers Corero’s shares undervalued relative to comparable listed cybersecurity businesses.
Its revised 21p target price is based on a valuation of four times forecast 2027 enterprise value to sales.
The broker notes that this valuation remains below the growth-adjusted multiples of several global cybersecurity software peers, partly reflecting the lower liquidity of Corero’s shares.
However, the investment outlook is not without risks. Slower customer renewals, competitive pressures, changes in commercial partnerships and weaker-than-expected cash generation could all affect future performance.
Final Thoughts
The latest research note from Canaccord Genuity supplied for this article presents a positive assessment of Corero Network Security’s progress.
With first-half revenue growth of 42%, improving profitability, market share gains and two new Tier 1 telecommunications customers, Corero has demonstrated progress in several important areas of its business.
The increased financial forecasts and 21p target price reflect Canaccord’s confidence in the company’s growth prospects.
For investors following the cybersecurity sector, the key developments to monitor will be Corero’s ability to build on its Tier 1 customer wins, sustain recurring revenue growth and convert its expanding commercial opportunities into consistent profitability and positive free cash flow.
