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On Tuesday, BTIG analyst Gray Powell maintained a Buy rating on CyberArk Software (NASDAQ:CYBR) with a steady price target of $485.00. This aligns with the broader Wall Street sentiment, as InvestingPro data shows a strong Buy consensus among analysts, with price targets ranging from $303 to $500. Based on InvestingPro’s Fair Value analysis, the stock currently appears to be trading above its intrinsic value. Following CyberArk’s Investor Day in Boston, the firm expressed a positive stance on the company’s long-term financial targets. CyberArk has set ambitious goals for 2028, including a yearly average recurring revenue (ARR) growth rate exceeding 18% and free cash flow (FCF) margins of 27%, within a Rule of 45 framework. The company’s current performance supports these targets, with InvestingPro reporting impressive revenue growth of 33.1% and industry-leading gross margins of 79.2%.
The company’s primary Privileged Access Management (PAM) market continues to exhibit robust growth. CyberArk also revealed that products outside of the PAM segment now account for approximately 50% of subscription ARR and are increasing at a faster pace. Additionally, the potential surrounding Agentic AI was highlighted as a significant opportunity not yet included in CyberArk’s long-term projections, suggesting possible upside.
CyberArk’s recent acquisition of Zilla, which expanded its presence in the Identity Governance and Administration (IGA) market, was another point of interest. BTIG forecasts that CyberArk’s long-term targets may be on the conservative side, anticipating that the company could maintain growth rates in the low 20s percent range over the next few years.
The demand environment for 2025 looks strong across various segments of the identity space, which CyberArk is targeting. The firm anticipates continued momentum and market share gains in the core PAM market. Positive feedback from fieldwork on Secrets Management and the opportunities in Venafi and machine identity management were also factors contributing to BTIG’s reaffirmed Buy rating on CyberArk Software. InvestingPro data reveals the company maintains a "GOOD" overall financial health score, with its next earnings report scheduled for May 1, 2025. Subscribers can access 13 additional ProTips and comprehensive financial metrics in the Pro Research Report.
In other recent news, CyberArk Software has received notable attention from several analyst firms following its impressive financial performance and strategic initiatives. BofA Securities has raised its price target for CyberArk to $500, highlighting the company’s strong positioning in the Identity Security market and its significant annual recurring revenue (ARR) growth of 29.5% year over year, which includes contributions from the Venafi acquisition. Stifel also increased its price target to $444, citing CyberArk’s substantial fourth-quarter results, including a 51% growth in ARR and a 41% rise in revenue. The firm’s expanding platform now covers a broader range of identities, bolstered by the acquisitions of Venafi and Zilla Security.
Jefferies reiterated a Buy rating with a $475 target, expressing optimism about CyberArk’s growth potential in areas like machine identity and agentic AI. The company has outlined a strategy to achieve an 18% compound annual growth rate in ARR from 2024 to 2028, aiming for $2.3 billion. Citi maintained its Buy rating with a $410 target, noting the company’s strong financial results and the increasing alignment of Term customer contracts with SaaS expansions. Baird analysts raised their price target to $455, emphasizing CyberArk’s standout fourth-quarter performance and the strategic value of its acquisitions.
These developments reflect a broad consensus among analysts about CyberArk’s robust market position and growth prospects in the evolving cybersecurity landscape.
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