Bitcoin price today: dips below $112k, near 6-wk low despite Fed cut bets
On Tuesday, BTIG analyst Gray Powell revised the price target for CyberArk Software (NASDAQ:CYBR) to $425 from the previous $485, while reaffirming a Buy rating on the company’s shares. The adjustment follows CyberArk’s solid first-quarter results, which surpassed expectations in both annual recurring revenue (ARR) and free cash flow (FCF). According to InvestingPro data, CyberArk’s stock has delivered an impressive 57% return over the past year, though current analysis suggests the stock is trading above its Fair Value.
CyberArk reported a Q1 ARR of $1,215 million, marking a 28% year-over-year organic growth, which edged past BTIG’s estimate of $1,211 million and the consensus of $1,202 million. The company, now valued at $17.84 billion, maintains impressive gross profit margins of 79.18% and has achieved 33.1% revenue growth over the last twelve months. Additionally, the company’s operating income and FCF were significantly higher than what analysts had anticipated.
Despite the reduction in the price target, Powell’s commentary on CyberArk’s performance was positive. He highlighted that the ARR beat was the best the company had achieved in two years. The maintained outlook for 2025, with a midpoint calling for an ARR of $1,415 million, indicates a 21% year-over-year growth, reflecting a stable future projection.
Powell also noted that CyberArk’s conservative approach to not adjusting its ARR guidance upward after the first-quarter beat minimizes the risk in its forecast for the remainder of the year. He expressed confidence in the company’s ability to grow its ARR at a 23% rate this year, which is above the guidance of 21%.
The analyst’s report concluded with a reiteration of the Buy rating, underlining the positive aspects of CyberArk’s recent performance and future potential. The company’s encouraging commentary on the macroeconomic environment, pipeline, and close rates were also factors contributing to the analyst’s optimistic outlook. InvestingPro subscribers can access 12 additional key insights about CyberArk, including detailed financial health metrics and growth projections, through the comprehensive Pro Research Report available for this and 1,400+ other US stocks.
In other recent news, CyberArk Software has reported strong first-quarter results for fiscal year 2025, with significant growth in annual recurring revenue (ARR) and revenue. The company’s ARR increased by 50% year-over-year, reaching $1.215 billion, surpassing consensus estimates. Analysts from various firms have responded positively, maintaining Buy ratings and setting price targets ranging from $425 to $455. DA Davidson, for instance, raised its price target from $415 to $435, while TD Cowen and Guggenheim set their targets at $450 and $455, respectively. Stifel also maintained a Buy rating with a $444 price target, citing CyberArk’s expanding platform and strategic acquisitions as key factors for its robust performance.
Despite the impressive results, CyberArk’s management has opted for a cautious approach, maintaining its ARR and Adjusted FCF guidance for fiscal year 2025 due to macroeconomic uncertainties. The company’s focus on machine identity solutions and Identity Governance and Administration (IGA) has been highlighted as a growth driver. Analysts from Guggenheim and Stifel emphasized CyberArk’s adaptability and potential for continued growth in the cybersecurity sector. Truist Securities noted the company’s resilience and potential for sustained growth, reaffirming a Buy rating with a $425 price target. CyberArk’s strategic direction and market position continue to garner confidence from analysts and investors alike.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.