It was a rough day for Imperva Inc. (NASDAQ:IMPV) stock after they were downgraded to underweight by JP Morgan (NYSE:JPM) analysts. As a result, the stock dropped by 3.5%.
Sterling Auty, the main analyst behind this decision, claims that “sales execution issues” were the main problem at Imperva, and is concerned that Imperva’s web-application firewall may not be enough of a push for the company.
The industry, on the whole, is seeing similar results. Check Point Software Technologies Ltd. (NASDAQ:CHKP) and Fortinet Inc. (NASDAQ:FTNT) also saw their stocks fall after being downgraded by the firm. The amount of security spending over time until 2021 has been re-evaluated; it was previously expected to grow in that time period by 6.5% annually, but now, according to the market-research firm Gartner, it will only grow 6% annually.
Before this drop, Imperva shares had climbed 4.7% in 2017.
Featured Image: Depositphotos/© Wavebreakmedia
