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On Monday, Cantor Fitzgerald reaffirmed its confidence in CyberArk Software (NASDAQ:CYBR), maintaining an Overweight rating and a $415.00 price target. The firm's optimistic stance is based on strong fourth-quarter checks and positive industry feedback for 2025, suggesting significant potential for new customer acquisitions in the core Privileged Access Management (PAM) sector and cross-selling opportunities with Venafi. The stock is currently trading near its 52-week high of $366.48, having delivered an impressive 55.22% return over the past year. According to InvestingPro analysis, CyberArk appears to be trading above its Fair Value, with analysts maintaining a Strong Buy consensus.
According to Cantor Fitzgerald, CyberArk continues to be their top midcap cybersecurity pick, citing the company's strong position to consolidate identity-related cybersecurity spending. The firm believes CyberArk is creating a durable competitive advantage and improving key performance indicators (KPIs). The company's robust financial health is evident in its impressive 81.07% gross profit margin and strong 30.31% revenue growth. InvestingPro subscribers can access 15 additional ProTips and a comprehensive Pro Research Report that provides deep insights into CyberArk's financial health and growth potential.
Cantor Fitzgerald has increased its estimates for CyberArk's performance based on the robust demand and positive feedback from the fourth quarter. The revised estimates are as follows: fourth-quarter 2024 estimated revenue is now $305.2 million, up from $302.2 million, surpassing the company's guidance range of $297 million to $303 million and the FactSet consensus of $301.2 million. The estimated annual recurring revenue (ARR) has been adjusted to $1.163 billion from $1.161 billion, above the consensus of $1.158 billion. Furthermore, the estimated earnings per share (EPS) for the same quarter have been increased to $0.74 from $0.73, fitting within the company's projected EPS range of $0.65 to $0.75 and higher than the consensus of $0.72.
For the fiscal year 2025, Cantor Fitzgerald has raised its revenue forecast to $1.309 billion from $1.290 billion, which is above the consensus of $1.302 billion. The ARR estimate for the same period has been slightly increased to $1.400 billion from $1.396 billion, compared to the consensus of $1.398 billion. The EPS forecast for fiscal year 2025 has been significantly raised to $3.69 from $3.48, outpacing the consensus of $3.60. These adjustments reflect the firm's belief in the sustainability of CyberArk's growth and demand trends into the years 2025 and 2026.
In other recent news, CyberArk Software has been the focus of several analyst firms. RBC Capital has maintained an Outperform rating on the company, raising the price target to $410. The firm cites strong market position in identity security and the potential for the company to surpass fourth-quarter expectations, particularly with the recent acquisition of Venafi enhancing margins and accelerating annual recurring revenue (ARR) growth.
Similarly, KeyBanc Capital Markets has raised its price target on CyberArk to $400, maintaining an Overweight rating. The firm emphasizes the importance of identity security for businesses moving towards 2025 and notes optimistic channel feedback about CyberArk's market momentum. The firm also sees potential for significant upside in CyberArk's acquisition of Venafi.
Piper Sandler has also increased CyberArk's price target to $380, maintaining an Overweight rating. The firm's outlook is based on the anticipation of successful integration of Venafi and the potential competitive benefit from a recent security breach at BeyondTrust, a main Privileged Access Management (PAM) competitor.
DA Davidson has increased their price target on CyberArk to $390, reaffirming a Buy rating. The firm sees potential upside in CyberArk's fourth-quarter ARR and sets expectations for the company's initial guidance for the calendar year 2025.
Lastly, Rosenblatt Securities sees a potential opportunity for CyberArk following a security breach at the US Treasury Department, linked to a compromised digital key from BeyondTrust. The firm suggests that CyberArk, with its specialization in PAM solutions, may find new growth avenues as organizations look to strengthen their cybersecurity infrastructure.
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