[UPDATE] Bernstein calls the top on cyber; desk demotes Palo Alto and CrowdStrike buys to watch
The AI-fear rally that carried security software to record highs since the Sept 14 Amodei/Altman warnings met a valuation check: on Sept 17 Bernstein's Peter Weed cut Palo Alto (plus Okta and SentinelOne) to Market Perform and flagged CrowdStrike as clearly above fair value, arguing the sector's ~100% 2026 run reached or passed fair value even as AI-driven demand keeps growing. PANW, CRWD, OKTA and S each fell 3-4% Friday. The desk had validated PANW and CRWD as buys for five sessions on a stale scout feed; on this fresh catalyst it demoted both to watch today, with PANW's new $351 target now below its price and CRWD implying >40% ARR growth against a likely upper-20s% true rate.