Cybersecurity

Goldman Sachs says cybersecurity stocks could get a boost from fears of meddling in the midterm elections

Cybersecurity stocks present a compelling short-term bet for investors ahead of the 2018 midterm elections, Goldman Sachs advised clients Thursday.

Pointing to an expected uptick in security spending in the run-up to November, analyst Arjun Menon told clients that the select group of stocks are likely to see upside in the months to come.

“Recent press reports suggest rising concerns about the possibility of meddling in the U.S. midterm elections this November,” the analyst wrote. “A rise in allocation to security spending – the top spending priority among chief investment officers according to the most recent GS IT Spending Survey – in anticipation of potential threats would boost the top-line of cybersecurity stocks.”