 Digitisation of everything is set to grow over the coming decade, bringing with it digital vulnerabilities  We believe there is a potential underspend but as global regulations catch up, this could benefit cybersecurity providers  From cybersecurity providers to cyber insurance and telecommunications, we flag nine stocks exposed to the theme Cybersecurity: Insight into a digital era In our Spotlight report Age of Cybersecurity: Spend to defend, 29 April 2021, we explore the market of cybersecurity and the ever-increasing threat of cyber attacks.

The cost of cyber crime globally in inflicted damage is expected to reach USD10trn by 2025, with spending predicted to rise to USD270bn per annum by 2026. We analyse the financial and reputational impact of data breaches, as well as stock market implications and future expectations. In this report, we outline nine companies under our coverage globally at HSBC that are at the forefront of this theme.

Capgemini (Buy, TP EUR180), Atos (Hold, TP EUR62), Sopra Steria (Buy, TP EUR180), Avast (Buy, TP 565p), Venustech (Buy, TP RMB50), NSFocus (Buy, RMB23) and ST Engineering (Buy, TP SGD4.38) are key managed security service providers across industries and regions.

Beazley Group (Buy, TP 430p) is a leading insurance company and the most geared listed player in the cyber insurance market.

Starhub (Hold, TP SGD1.40) is a key telecommunication company providing a range of security services with growing cybersecurity revenues.