Hub Cyber Security Ltd – Analysis
Company Overview
Hub Cyber Security Ltd is an Israel-based cybersecurity company founded in 2017. The company specializes in confidential computing solutions that protect sensitive data for commercial and government organizations.
Hub’s main product is its confidential computing platform, which isolates data and applications in secure enclaves to prevent unauthorized access. The platform can be deployed on edge devices, data centers, and private clouds.
In addition to its confidential computing platform, Hub offers a range of professional cybersecurity services including risk assessments, managed security, and compliance services. The company operates in over 30 countries worldwide. Hub Cyber Security trades on the NASDAQ under the ticker HUBC.
Recent News – Collaboration with Blackswan Technologies
On December 1st, 2023, Hub Cyber Security announced an expanded collaboration with Blackswan Technologies, a leading U.S. enterprise AI company, to provide joint cybersecurity solutions to the financial services sector.
Under a 3-year agreement between Blackswan Technologies and one of Europe’s largest banks, Hub will provide confidential computing solutions to protect the bank’s critical data assets while they are being processed – when data is most vulnerable.
The framework agreement has a potential 2-year extension. Hub estimates its revenue share will exceed $25 million over the next 1.5 years.
This collaboration significantly expands Hub and Blackswan’s existing partnership. It is expected to increase Hub’s customer pipeline, as Blackswan is prominent among major banks, credit, and investment firms that need advanced cybersecurity.
Stock Performance
Here is a summary of recent stock performance:
Current share price: $0.29
52-week range: $0.19 – $16.98
Market cap: $27.97 million.
HUBC stock rose over 30% on December 1st after announcing the Blackswan collaboration.
In November, HUBC received a notification from Nasdaq regarding its minimum $1 bid price requirement. The company has until June 2023 to regain compliance.
Analyst Views
Several analysts have recently commented on Hub Cyber Security:
Craig-Hallum analyst Jeremy Hamblin initiated coverage with a Buy rating and $5 price target, seeing “massive market potential” for Hub’s confidential computing solutions.
Aegis Capital analyst Mike Grondahl has a Buy rating and $5 target on HUBC shares. He expects strong long-term growth as confidential computing gains broader adoption.
Northland Capital Markets analyst Michael Latimore has an Outperform rating and $4 target. He sees Hub’s technology as differentiated and believes the Blackswan partnership validates the platform.
HUBC Daily Stock Chart
Note, there has been a substantial increase in daily trading volume.
For additional information on HUBC:
Conclusion and Outlook
Hub Cyber Security’s new collaboration with Blackswan Technologies is a promising development that validates the strength of Hub’s confidential computing solutions. Securing a major European bank as a customer through this partnership represents a significant revenue opportunity over the next few years.
If Hub can execute on implementing its technology to protect the bank’s critical systems and data, it may open the door to further business with other large financial institutions. Blackswan’s relationships and industry prominence provide an avenue for Hub to showcase its capabilities on a global stage.
The partnership also comes at an opportune time as Hub seeks to regain compliance with Nasdaq’s $1 minimum bid price rule. The stock’s recovery following the announcement indicates investors are optimistic about Hub’s growth prospects.
However, risks and uncertainty remain given Hub’s financial profile. With a history of losses and need to raise additional capital, Hub’s small size and early stage make it vulnerable to competitive threats and market downturns. But continued commercial progress and technology validation could improve its financial standing over time.
Overall, Hub Cyber Security appears to be gaining momentum through its collaboration with Blackswan. If the company can deliver on its technology promise and translate the partnership into sustained revenue growth, its long-term outlook may be promising. Careful execution and prudent financial management will be key in the quarters ahead.
We like HUBC as a potential runner this week.
Your friend,
Steve Macalbry
Senior Editor, BestGrowthStocks.Com
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Disclaimer: The author of this article is not a licensed financial advisor. This article is intended for informational purposes only. It should not be considered financial or investment advice. We have not been compensated for the creation or distribution of this article in any way. We do not hold any form of equity in the securities mentioned in this article as of 12/04/2023. Always consult with a licensed financial professional before making any financial decisions. Growth stocks are speculative in nature, and you could lose your entire investment.
Sources
Globe Newswire, December 1, 2023
Yahoo Finance, accessed December 3, 2023
InvestorPlace, December 1, 2023
CNBC, accessed December 3, 2023
Press release, June 13, 2023
The Fly, November 21, 2022
The Fly, June 13, 2022
The Fly, December 1, 2023