Cantor Fitzgerald cuts CyberArk price target to $400, keeps Overweight

Published 13/03/2025, 16:00
© CyberArk PR

On Thursday, Cantor Fitzgerald’s analysts adjusted their financial outlook on CyberArk Software (NASDAQ:CYBR), reducing the price target to $400 from the former $445. Despite the decrease, the firm maintains an Overweight rating on the company’s stock. Currently trading at $325.34, InvestingPro data shows the stock has gained nearly 30% over the past year. The revision reflects a change in the estimated enterprise value to sales (EV/Sales) multiple for the year 2025, now set at 15.7 times, down from the previous 17.6 times. This adjustment is made even as CyberArk’s peers average an 8.1 times multiple. According to InvestingPro analysis, the stock appears overvalued at current levels, though 19 analysts have recently revised their earnings expectations upward.

The analysts at Cantor Fitzgerald reiterated their confidence in CyberArk’s position as a leader in the critical and complex sphere of identity security, specifically in Privileged Access Management (PAM). They believe that the company’s premium valuation is warranted due to its authoritative role in this sector. This leadership is reflected in the company’s impressive gross profit margins of 79.18% and strong revenue growth of 33.1% in the last twelve months. For deeper insights into CyberArk’s financial health and growth prospects, InvestingPro subscribers can access the comprehensive Pro Research Report, which covers key metrics and expert analysis.

CyberArk has been recognized for its strategy of building on its PAM leadership to gradually extend into adjacent areas such as Identity and Access Management (IAM), Cloud Security, DevSecOps, IT Disaster Recovery (ITDR), and Machine Identity. The firm’s analysts predict that CyberArk’s continued innovation and expansion into these areas will likely lead to an acceleration in revenue growth.

The transition to a recurring Subscription/Software as a Service (SaaS) model is another aspect that Cantor Fitzgerald believes will contribute to CyberArk’s financial performance. According to their analysis, this shift is expected to start positively impacting the company’s operating leverage within the current year.

In summary, Cantor Fitzgerald’s analysts have reaffirmed their positive stance on CyberArk Software, while adjusting the price target to reflect a more conservative EV/Sales multiple. They emphasize the company’s sustained leadership and strategic expansion as key drivers for future revenue growth and operational efficiency.

In other recent news, CyberArk Software has been the focus of several analyst updates following its recent Investor Day event. Citi analysts raised their price target for CyberArk to $450, maintaining a Buy rating, citing the company’s achievable financial targets for 2028 and its strong market position. Similarly, Truist Securities also maintained a Buy rating with a $450 price target, highlighting CyberArk’s innovation in identity security solutions and its alignment with market trends like Zero Trust security frameworks. Stifel reiterated a Buy rating with a $444 target, noting CyberArk’s potential in emerging areas such as Machine Identity and Identity Governance. RBC Capital Markets expressed confidence in CyberArk’s growth strategy, maintaining an Outperform rating and a $481 price target, emphasizing the company’s focus on machine identity and agentless AI. DA Davidson also affirmed its Buy rating with a $475 target, praising CyberArk’s solid ARR growth and market strategy. These developments reflect a strong consensus among analysts regarding CyberArk’s growth prospects and strategic direction in the cybersecurity sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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