These Cybersecurity Stocks Could Gain From Fallout After CrowdStrike Outage, Analysts Say [Video]

After a defective CrowdStrike (CRWD) update caused what Deutsche Bank called “the widest IT outage in modern history,” analysts said some of its competitors in the cybersecurity space could be positioned to benefit from customers considering alternatives.

SentinelOne (S) and Palo Alto Networks (PANW) “could both be potential beneficiaries of the recent CRWD incident,” Wedbush analysts wrote, adding that there are some indications that CrowdStrike customers are considering alternatives.

Deutsche Bank analysts said that Microsoft (MSFT), which was connected to the outage as it affected Windows operating systems, could gain as the tech giant also offers cybersecurity solutions.

However, the analysts noted that even if CrowdStrike customers decide to switch to a competitor, “selecting a security vendor is a long process,” making it unlikely that the other cybersecurity providers would see gains immediately.

CrowdStrike warned customers that threat actors were posing as employees during the chaos brought on by the outage, which analysts said …