National Bank outperform $50 Adding Breadth to Capabilities
This morning, Magnet Forensics announced the launch of Magnet IGNITE, a cloud-based triage tool for enterprise clients to
perform remote scans of target endpoints for malicious and insider activities.
According to the Company, this product can triage multiple remote endpoints at once to provide digital forensic and incident
response teams with an early case assessment, which can be critical in the next steps of investigations into cyber threats.
In terms of detailed functionalities, Magnet IGNITE enables enterprises to perform the following:
• Cloud: Perform rapid and remote triaging of endpoints from anywhere, at any time with the cloud.
• Quick Triage: Scan internet history, cloud storage, USB connection history, installed apps, memory and other volatile data
and recently accessed files and folders for malicious or insider activity.
• Multiple Endpoints: Accelerate response to cyber attacks by triaging multiple remote endpoints at once.
• Collaboration: Share findings with internal and external stakeholders using easy-to-use built-in web review tool.
• Integration with AXIOM: Export findings to Magnet AXIOM Cyber to begin full forensic analysis of endpoint.
In our view, we believe the biggest benefit comes from efficiency improvement as quick triage enables investigators to
pinpoint the exact endpoints to be investigated, instead of a full scan of the entire base. This efficiency improvement
(several hours or even days saved) can be particularly important for enterprise clients to respond promptly to cyber attacks.
It could also add value to SMBs which previously lacked the technical capabilities or resources to perform such triage. Given
this solution could be sold separately from the AXIOM Cyber, we believe this new product could not only add breadth to
MAGT’s enterprise offerings, but it also has the potential to drive a deeper penetration of the AXIOM Cyber given its seamless
integration.
As a side note, this product is the first solution to graduate from the Magnet Idea Lab and has been tested by a group of users
including professional service providers and Fortune 500 companies since March 2021. If anything, this product announcement
is an example of the Company’s scaling product pipeline to address the cybersecurity threats in the enterprise space, a
market with a significant TAM upside.
We believe Magnet Forensics is an early leader in this market with a suite of competitive offerings to target both the public
and enterprise clients. The quality of its business model is further underscored by its financial performance with strong
growth and profitability profiles. We reiterate our Outperform rating and target price of C$50 based on our multi-staged DCF
which implies a 16.7x EV/Sales on F2022E (unchanged).