Corero Network Security (LON:CNS) has delivered another encouraging quarter of commercial progress, prompting Canaccord Genuity to reaffirm its BUY recommendation and 21p share price target following a 50% increase in third-quarter order intake.
The latest research note from Canaccord Genuity, dated 14 October 2026, highlights the cybersecurity specialist’s continuing ability to secure new customers, expand internationally and compete for business in the growing Distributed Denial of Service (DDoS) protection market.
With bookings increasing across several regions and larger telecommunications customers contributing to growth, the broker believes Corero remains well positioned to capture additional market share.
Third-quarter bookings increase 50%
The headline development is Corero’s strong order intake during the third quarter of 2026.
Bookings increased by 50% year on year to $11.1 million, supported by a combination of major customer wins and further orders secured through its international distribution network.
During September, Corero had already announced contracts worth $5.3 million involving Tier 1 telecommunications operators in the United States and United Kingdom, alongside neocloud customers.
The company subsequently secured another $5.8 million in orders from new and existing customers across Europe, Latin America and the Asia-Pacific region.
These additional contracts were predominantly secured through channel partners, highlighting the importance of Corero’s established distribution relationships.
New customer wins included telecommunications operators in Eastern Europe and Latin America, extending the company’s reach into additional international markets.
For the first nine months of 2026, total order intake reached $25.4 million, representing growth of 28% compared with the corresponding period in 2025.
These figures suggest commercial activity has maintained momentum following the company’s encouraging first-half performance.
Tier 1 customer wins demonstrate commercial progress
One particularly significant development is Corero’s ability to win business with larger telecommunications operators.
Historically, the company has served a substantial number of smaller telecommunications, internet and cloud service providers.
However, its recent successes with Tier 1 operators indicate that its cybersecurity technology is increasingly being adopted by customers with larger and more demanding network infrastructures.
These contracts are important because telecommunications operators require effective protection against DDoS attacks, which can disrupt services by overwhelming networks with malicious traffic.
Corero’s SmartWall technology is designed to identify and mitigate these attacks automatically, helping organisations maintain service availability.
Canaccord believes the company’s approach provides a competitive advantage over traditional solutions that often redirect suspicious traffic to specialist scrubbing centres for cleansing.
The broker also highlights Corero’s CORE observability platform, which extends protection capabilities from the network to the application layer.
According to Canaccord, this development brings Corero’s product capabilities broadly into line with those offered by its principal competitors.
Canaccord sees further market share opportunities
The latest research note presents Corero’s international order growth as evidence that the company is continuing to make progress within the DDoS protection market.
Lead analyst Kai Korschelt, alongside fellow analysts Hayley Palmer and Tom Like, writes:
“The strong bookings momentum in our view suggests Corero remains on track to continue to gain share of the DDoS protection TAM.”
The broker believes Corero’s automated approach to attack mitigation, together with its expanding product capabilities, provides opportunities to compete with larger established cybersecurity vendors.
International expansion is also becoming an increasingly important part of the company’s development.
The latest orders from Europe, Latin America and Asia-Pacific demonstrate that Corero is attracting business beyond its established customer base, while its channel partnerships provide additional routes to market.
Financial forecasts remain unchanged
Despite the stronger third-quarter bookings, Canaccord has maintained its existing financial forecasts.
The broker continues to expect Corero to deliver a compound annual revenue growth rate of approximately 15% between 2025 and 2028.
Its current revenue estimates stand at $31.9 million for 2026, $35.1 million for 2027 and $38.4 million for 2028.
Adjusted EBITDA is forecast to reach $5.3 million in 2026, rising to $5.7 million in 2027 and $6.6 million in 2028.
Canaccord considers its 2026 forecasts achievable, noting that approximately $4.5 million of upfront software licence and appliance revenues would be required during the second half to meet its expectations.
This compares with approximately $5 million delivered in the second halves of each of the previous two years.
While the strong bookings provide encouragement, the timing of revenue recognition and the conversion of contracts into earnings remain important considerations.
Canaccord maintains 21p target price and BUY recommendation
Canaccord continues to believe Corero’s valuation does not fully reflect its growth opportunities.
The broker has retained its 21p target price, representing 75% potential upside from the 12p share price referenced in the research note, based on the market close of 13 October 2026.
Its valuation is based on four times forecast 2027 enterprise value to sales.
Canaccord’s research also highlights the valuation difference between Corero and several established cybersecurity businesses.
The broker’s comparison of forecast 2027 enterprise value to revenue multiples places Corero at approximately 2.2 times, below the selected global DDoS protection and UK cybersecurity peers.
These include A10 Networks, Akamai, Radware, Intercede and NetScout, whose corresponding multiples range from approximately 2.6 to 5.6 times.
Canaccord therefore sees scope for a higher valuation if Corero continues to deliver its projected growth.
However, the broker also acknowledges that lower share liquidity warrants a valuation discount relative to some larger international competitors.
Final Thoughts
The latest Canaccord Genuity research reinforces the positive commercial momentum demonstrated by Corero Network Security during 2026. Third-quarter bookings growth of 50%, new international customer wins and continued expansion into larger telecommunications accounts provide encouraging evidence of progress.
Importantly, the company’s ability to secure additional orders through channel partners suggests its international sales network is contributing to growth. With Canaccord reiterating its BUY recommendation and maintaining a 21p target price, the broker remains positive about Corero’s prospects.
The next important test will be whether Corero can convert its growing order book into revenue, deliver against expectations and maintain its competitive position within the DDoS protection market.
