Darktrace shares plummet on reports of being ‘overvalued’
By Jenny McCall
10:20, 25 October 2021
Shares of the British-American information technology company Darktrace that specialises in cyber defence, fell on Monday as a broker issued a sell note.
The stock price dropped by over 25% as according to reports, Peel Hunt – which provides broking, advisory and trading house services – issued a sell note that contained a price target of 473p.
Capital.com reached out to Peel Hunt for confirmation on the sell note, but no comment was made by the broker. According to reports in the financial media portal Proactive, Peel Hunt said it believed Darktrac’s strong growth rates would continue, but it thought the shares were overvalued.
Darktrace has been on a positive trajectory since its stock market inception in April.
The group, which launched one of the year’s most successful initial public offerings, saw its shares rise by over 100% since its flotation and on the day of its stock market debut, its stock price had soared by nearly 40%.
At the time, Cathy Graham, the chief financial officer of Darktrace, said: “We have continued our strong performance into the first quarter of FY2022, growing our customer base, ARR [accounting rate of return] and revenue. We remain focused on empowering organisations to interrupt cyber threats, before they experience a business disruption, using our leading Self-Learning AI [artificial intelligence] technology.”
Read more: Darktrace increases guidance as forex “headwinds” eliminated