The Tesserent Ltd (ASX: TNT) share price has rallied strongly in the last month, surging 40% to a five-month high of 30 cents.
Tesserent provides full service cyber security solutions with a focus on government, critical infrastructure, and financial services markets.
Despite Tesserent shares making a comeback in the new financial year, the company has not released any market sensitive news since its third quarter update on 29 April.
While the company might be quiet in terms of news, there is plenty going on in the cyber security space.
Let’s take a look at other factors that might be driving the Tesserent share price.
Government cyber security tailwinds
Tesserent might be riding the Australian Government’s commitment to boost cybersecurity capabilities.
Back in August 2020, Prime Minister Scott Morrison announced a $1.67 billion investment over the next decade to protect Australia’s digital economy.
On Tuesday, Minister for Home Affairs Karen Andrews released a discussion paper consulting on cyber security reforms.
According to the release, “reforms under consideration include stronger cyber security standards for the digital economy, more transparent information about cyber security, and stronger legal remedies for consumers.”
“This process will build on the measures the Government is already delivering to help businesses improve their cyber security, including the $8.3 million Cyber Security Connect and Protect Program to uplift the cyber security of small and medium businesses and $70.3 million Cyber Security Skills Partnership Innovation Fund to grow Australia’s cyber security workforce.”
In addition, the consultation comes after a report from the Australian Institute of Criminology flagging the total economic impact of cybercrime on the Australian economy at $3.5 billion.
Tesserent hits turnover milestone
Last month Tesserent advised that it will “comfortably” exceed its prior ambition to achieve an annualised turnover run rate of $150 million.
The upbeat news was delivered on 22 June. That day its shares surged 26% from 20.5 cents to 26 cents.
Tesserent share price still playing catch up
The Tesserent share price is still down around 15% year to date, despite upbeat announcements such as the company’s third quarter update and annualised turnover run rate upgrade.
However, looking at its performance over the last 12 months, the cyber security company has seen its valuation surge nearly 269%.