Citi not too concerned about systems software exposure to SVB

Citi analyst Fatima Boolani scanned the firm’s North America systems software coverage for exposure to SVB Financial (SIVB) following news of the Federal Deposit Insurance Corporation takeover at Silicon Valley Bank. SVB was the lender of choice for most of the high tech and enterprise software complex, the analyst tells investors in a research note. In Citi’s initial pass of its coverage universe’s filings over the last two years and SVB’s documents and materials, it found Crowdstrike (CRWD), Fastly (FSLY), Rapid7 (RPD), Datadog (DDOG), SentinelOne (S), HashiCorp (HCP), and Progress Software (PRGS) as having some financial relationship with SVB. Fortinet (FTNT) noted cash deposit exposure at less than $2M, which is being transitioned out, while Crowdstrike indicated 10% of funds exposed, says Citi. At this point, the firm believes that the exposure of systems software companies "doesn’t seem all that concerning."