BofA reiterates CyberArk stock Buy rating, maintains $500 target

On Tuesday, BofA Securities expressed continued confidence in CyberArk Software (NASDAQ:CYBR), maintaining both a Buy rating and a $500.00 price target for the company’s shares. According to InvestingPro data, this target represents a 19% upside from current levels, with the stock already delivering an impressive 54% return over the past year. The endorsement follows CyberArk’s latest financial results, which showcased a robust performance exceeding expectations. The company’s Annual Recurring Revenue (ARR) surged to $1,215 million, marking a 50% year-over-year increase and surpassing the anticipated 48%. Revenue growth also impressed, climbing 43% compared to the predicted 38%, building on the company’s strong track record of 18% revenue CAGR over the past five years.

CyberArk’s earnings beat was partly credited to a combination of higher-than-anticipated revenue growth and a favorable mix of self-hosted subscriptions. The company maintains impressive gross profit margins of 79.2% and holds more cash than debt on its balance sheet, earning a "GOOD" Financial Health score from InvestingPro. Despite surpassing its first-quarter revenue guidance by $13.6 million, CyberArk offered a conservative forecast for fiscal year 2025, slightly raising the guidance by just $5 million. BofA Securities interprets the company’s cautious outlook as a strategic move to mitigate risks amidst uncertain economic conditions.

The analysts at BofA Securities support CyberArk’s conservative guidance strategy, suggesting it reflects a prudent approach in the current macroeconomic climate. They believe that this cautious stance could help de-risk the company’s projections. Despite the restrained forecast, BofA Securities has decided to leave their estimates largely unaltered, citing CyberArk’s solid operational framework that is poised to drive continued outperformance. The analysts underscore that CyberArk’s fundamentals remain strong, reinforcing their decision to reiterate a Buy rating and a $500 price objective. For deeper insights into CyberArk’s valuation and growth prospects, including 10+ additional ProTips and comprehensive financial metrics, check out the detailed Pro Research Report available on InvestingPro.

In other recent news, CyberArk Software reported impressive first-quarter results, with annual recurring revenue (ARR) reaching $1,215 million, reflecting a 28% year-over-year growth. This performance exceeded expectations from both BTIG and consensus estimates. Analysts from DA Davidson and TD Cowen have shown confidence in CyberArk’s strategic direction, with DA Davidson raising its price target to $435 and TD Cowen maintaining a $450 target. Guggenheim also maintained a Buy rating, setting a price target at $455, highlighting CyberArk’s strong growth in New ARR adjusted for acquisitions. Stifel echoed this sentiment, maintaining a Buy rating with a $444 target, noting the company’s robust year-over-year revenue increase of 43%. Despite the strong results, CyberArk chose not to adjust its ARR guidance for 2025, opting for a conservative approach amid macroeconomic uncertainties. Analysts from BTIG and Stifel noted CyberArk’s strategic acquisitions, such as Venafi, as key contributors to its expanding platform. The company’s focus on machine identity solutions and governance aligns with industry trends, supporting its potential for continued growth.

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