BofA raises CyberArk Software target to $500, maintains buy

On Tuesday, BofA Securities analyst Tal Liani increased the price target on CyberArk Software (NASDAQ:CYBR) to $500 from the previous target of $355, while reiterating a Buy rating on the company’s stock. The adjustment reflects a valuation based on 15 times the expected CY26E enterprise value/sales (EV/sales), up from the 13 times CY25E EV/sales previously used. The stock, currently trading near its 52-week high of $419.49, has delivered an impressive 58.7% return over the past year. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with 15 analysts recently revising their earnings expectations upward.

Liani’s commentary highlighted CyberArk’s strong positioning within the evolving Identity Security market, which is shifting from a fragmented collection of products to a core component of cybersecurity. CyberArk’s comprehensive solutions for both human and machine identities place it in a favorable position to capitalize on market opportunities. With a market capitalization of $20.16 billion and robust gross margins of 79.18%, InvestingPro data reveals the company’s strong financial foundation. Discover more insights about CyberArk’s market position and growth potential in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

CyberArk’s financial performance supports the analyst’s optimistic outlook, with the company’s annual recurring revenue (ARR) growing 29.5% year over year organically, and a substantial 51.0% increase when including the impact of the acquisition of Venafi. This growth surpasses the Street’s estimate of 49.7%. The company’s guidance for FY ARR growth is 21%, slightly above the Street’s expectation of 20%.

The company’s revenue also showed impressive growth, with a 19.7% increase year over year on an organic basis. Including the contributions from Venafi, revenue growth reached 40.9% year over year, which was 590 basis points higher than Street estimates. The inclusion of Venafi not only contributed to top-line growth but also proved to be margin accretive for CyberArk. Operating margins (OM) were up 310 basis points year over year and exceeded expectations by 300 basis points. InvestingPro data shows the company’s overall revenue growth at 33.1% for the last twelve months, with additional ProTips highlighting strong financial health indicators and growth metrics available to subscribers.

Liani’s analysis suggests that CyberArk’s continued acceleration in machine identity growth could lead to conservative estimates as the market for machine identities reaches a critical point of adoption. The company’s recent quarterly results, which exceeded expectations, serve as a testament to its strong market position and the successful integration of Venafi into its business operations.

In other recent news, CyberArk Software continues to impress with its financial performance and strategic acquisitions. Stifel analysts raised their stock price target for the company to $444, acknowledging the company’s robust fourth-quarter results. The company reported a substantial year-over-year increase in Annual Recurring Revenue (ARR) and revenue, with both figures exceeding analysts’ forecasts. CyberArk’s expansion into a wider range of human and non-human identities, bolstered by the recent acquisitions of Venafi and Zilla Security, was also noted.

Similarly, Baird analysts raised their stock price target to $455, citing the company’s impressive fourth-quarter performance. The firm highlighted the value of the Venafi acquisition and the growth of the Secrets Management segment. The recent acquisition of Zilla, which introduced modern Identity Governance Administration (IGA) capabilities, was also noted for broadening CyberArk’s governance portfolio.

KeyBanc Capital Markets increased their price target for CyberArk to $485, following the company’s robust fourth-quarter performance. The company’s guidance for 2025 also exceeded market consensus, projecting an ARR of $1.415 billion. The acquisition of IGA vendor Zilla, aimed at expanding into smaller enterprises, was viewed favorably by the firm.

William Blair maintained an Outperform rating for CyberArk, highlighting the company’s growth and strategic positioning in the cybersecurity industry. The firm noted the company’s comprehensive platform and acquisitions of Venafi and Zilla as key factors in its success.

Finally, Jefferies analyst Joseph Gallo increased the price target for CyberArk to $475. Gallo highlighted CyberArk’s strong presence in the IGA space and the potential for expansion in Privileged Access Management (PAM) in the near term. The firm’s positive outlook is underpinned by the potential for expansion in PAM and Machine Identity/IGA over the long term.

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