# Corero Network Security sees target price lifted to 20p by Canaccord Genuity

- Link: https://www.directorstalkinterviews.com/corero-network-security-sees-target-price-lifted-to-20p-by-canaccord-genuity/4121252924
- Published: 2026-03-26T11:50:00+00:00
- Author: Anthony Fox

**[Corero Network Security](https://www.directorstalkinterviews.com/company/corero-network-security-plc/cns.l)
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.

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