Wedbush Securities has named a raft of technology stocks it thinks will do well as the threat of cyber warfare intensifies amid the Russia-Ukraine conflict. A host of Western nations, led by the U.S., agreed Saturday to block key Russian banks from SWIFT, a payments service that powers most of the world's international money transfers . It means the institutions will not be able to communicate securely with other banks outside of Russia's borders, potentially severing Moscow from much of the global financial system. It comes as the international community attempts to dial up pressure on the Kremlin to deter Russian President Vladimir Putin from further aggression against Ukraine . Yet, it will also likely lead to a "significant ramp-up" of cyber warfare by Russian state-backed organizations, Wedbush Securities analyst Dan Ives said in a note Sunday. He expects various U.S. and European enterprises and government agencies to be targeted. The warning comes against the backdrop of an alleged campaign of cyberattacks on Ukrainian government websites and banks, which Ives says will now be "elevated" toward Western nations. Tech beneficiaries This adds "growth tailwinds" to an already buoyant cyber security sector, which was expected to grow 20% even before the conflict broke out, Ives said. "With many high-profile cyber security attacks from Russia over the past few years, it's a matter of when, not if, this increased warfare activity now kicks into gear," he said. This will catalyze higher spending around preventing sophisticated Russian-based cyber attacks going after datacenters, networks, vulnerability points and highly sensitive data, Ives added. "In a very nervous investing backdrop for tech, we believe the cyber security sector is a clear pocket of strength that we would be overweighting at current levels," he said. Wedbush said following cyber security stocks were "most likely to benefit from this additional Ukraine-driven APT [advanced persistent threat] spending": Pablo Alto Networks Zscaler Crowdstrike Tenable Varonis Fortinet Telos Mandiant Palantir Technologies CyberArk Software
The Russian flag displayed on a laptop screen with binary code code overlaying.
Nurphoto | Getty Images
Wedbush Securities has named a raft of technology stocks it thinks will do well as the threat of cyber warfare intensifies amid the Russia-Ukraine conflict.