SCWX - SecureWorks: A Promising But Challenging Software Transition

• SecureWorks recently held its virtual investor day event, offering more color on the planned transition toward a software-oriented model.
• The numbers are compelling, from the $37 billion addressable market to the targeted EBITDA margins in the low-mid 30s %.
• However, the road ahead is challenging, especially considering the 3-5-year timeline, and I am concerned about the potential downside risk to the targets.
• Current valuations are below security peers but a premium to MSS peers, which seems fair.

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