Corero Network Security plc (LON:CNS) has received a positive update from Canaccord Genuity, with the broker raising its target price to 20p from 19p and reiterating its Buy rating in its latest research note. The note, dated 24 March 2026, points to improving revenue momentum, stronger annual recurring revenue and a clearer path towards growth in sales, profit and cash flow during FY26.
Corero is a cybersecurity software company focused on protection against Distributed Denial of Service, or DDoS, attacks. Its SmartWall solution helps organisations defend their networks from malicious traffic designed to overwhelm systems and disrupt services. The company sells both directly and through channel partners, including Juniper, Akamai and GTT, with a focus on telecoms, internet service providers, cloud service providers and enterprises.
Canaccord Genuity’s analysts, Kai Korschelt, Hayley Palmer and Tom Like, highlight that Corero’s FY25 results show a clear improvement in the second half of the year. Research Analyst Kai Korschelt wrote: “Corero’s January update showed improving 2H revenue momentum and today’s FY25 results suggest it is on track for accelerating growth and recovering profits & cash flow this year”.
The latest research note from Canaccord Genuity points to FY25 sales of $25.5m, up 4% year on year. While the first half was weaker, revenue recovered strongly in the second half, rising 18% year on year after a 10% decline in 1H25. Recurring revenues were a key feature, rising 19% and accounting for 68% of total revenue, around 900 basis points higher than the previous year.
FY25 highlights
Sales increased 4% to $25.5m.
Second-half revenue recovered strongly, rising 18% year on year.
Recurring revenues grew 19% and represented 68% of total revenue.
Annual recurring revenue rose 23% to $23.9m.
Second-half order intake increased 52% year on year to $21.3m.
Gross margin remained high at 90.1%.
Adjusted EBITDA was $2.0m.
Free cash flow was negative $1.2m.
Net cash stood at $4.0m at year end.
One of the most important points in the note is the strength of Corero’s annual recurring revenue. Canaccord Genuity says ARR rose 23% year on year to $23.9m, placing Corero among the top three organic ARR growers in its UK small and mid-cap software coverage. The chart on page 3 of the research note shows Corero’s ARR progressing from $8.8m in 1H20 to $23.9m in 2H25, illustrating a sustained multi-year growth trend.
The broker also highlights strong visibility for its upgraded forecasts. It has lifted sales forecasts by around 5.5%, with the FY25 exit ARR covering 82% of its FY26 estimate. This suggests that a smaller proportion of the FY26 forecast depends on appliance and upfront licence sales than in the prior year, which may make the revenue outlook more predictable.
Canaccord Genuity now forecasts sales of $29.0m in FY26, rising to $32.5m in FY27 and $35.4m in FY28. Adjusted EBITDA is expected to rise from $2.0m in FY25 to $3.1m in FY26, $4.2m in FY27 and $5.2m in FY28. The broker’s estimates imply a 12% organic revenue CAGR and a 35% EBITDA CAGR from FY25 to FY28.
The market backdrop also appears supportive. The research note says DDoS attacks more than doubled globally in 2025, with page 5 showing a rise from 21.3m attacks in 2024 to 47.1m in 2025. The chart on the same page also shows hyper-volumetric DDoS attacks rising through 2025, reaching 1,824 in Q4. These attacks can place severe pressure on network and internet infrastructure, which helps explain why protection solutions remain important for telecoms, internet, cloud and financial services customers.
Page 6 of the note highlights that Corero’s target sectors overlap with some of the most attacked industries, including telecommunications, internet, banking and financial services, and cybersecurity. The same page also shows the global DDoS protection market growing from $4.7bn in 2025 to an estimated $10.28bn in 2031. Canaccord Genuity believes Corero’s focus on faster-growing regions such as Latin America and Asia-Pacific should also support its longer-term growth outlook.
On valuation, Canaccord Genuity’s 20p target price is based on 4x CY27E EV/Sales, which it describes as in line with listed UK and global cybersecurity software peers on a growth-adjusted basis. With the shares priced at 12p at the time of the note, the broker says this target implies 67% upside potential. The note also states that Corero is trading on 2.7x CY26E EV/Sales and 3.3x EV/ARR multiples.
Final Thoughts, Canaccord Genuity’s latest research note presents Corero Network Security as a business with improving momentum, rising recurring revenues and a growing addressable market. The company still has work to do on profitability and cash generation, but the broker’s upgraded forecasts, 23% ARR growth and raised 20p target price all point to a more constructive outlook for FY26 and beyond.
