The Darktrace share price has ended the trading day on a lower note, as the FTSE 100 found itself under intense selling pressure on the day. The 1.98% decline on the day puts Darktrace in the number 30 spot on the FTSE 100’s losers’ chart.
The bulls would be looking to build on the company’s revised forward guidance to launch a recovery. Two weeks ago, the cybersecurity and artificial intelligence company raised its financial outlook for 2022 after posting solid sales figures over nine months. After posting revenue of $302.4 million for the nine months approaching 31 March (a 52% annualized increase), it expects to grow annual recurring revenue from between 38.5% and 40% to between 40% and 41.5% year-on-year.
Darktrace also grew its client base by 5.65% in the last month to 6,890, reflecting a 37% increase over the previous year’s performance for the same period. The company says that its new customers are responsible for most of its annualized recurring revenue, which came in at $462.6 million as of 31 March. The figure represented a 46% year-on-year increase.
The Darktrace share price has been on a relentless slide since forming a double top on 23 September/18 October 2021. The descent from an all-time high of 1003.0 to the current price of 416.0 represents a 58.52% decline. Four institutional analysts have provided a 12-month price target of 721.25p, which represents a 42.30% upside potential for the Darktrace share price.
The rejection of the return move off the 438.8 resistance (17 January and 21 March lows) following the downside violation of this price mark provides the impetus for a decline which is expected to aim for the 360.6 support (14 April low). If the bulls fail to defend this new support, there will be price deterioration towards 316.0. The 30 April all-time low at 250.0 forms an additional southbound price target.
On the other hand, a break above 438.8 allows the Darktrace share price activity to aim for the resistance level at 485.7 (1 December 2021 and 25 March highs). A further target to the north resides at 549.6 (18 November 2021 high), with 641.3 and 702.3 rounding off potential short-term upside targets. There is a potential for the 600.0 psychological resistance to form a pitstop between 549.6 and 641.3.
This post was last modified on Apr 25, 2022, 18:51 BST 18:51