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On Monday, Citi analysts, led by Fatima Boolani, increased the price target on CyberArk Software (NASDAQ:CYBR) from $410.00 to $450.00, while reiterating a Buy rating on the company’s stock. The cybersecurity firm, currently valued at $17.9 billion, has seen its stock surge nearly 30% over the past six months. Boolani’s assessment followed CyberArk’s analyst day, where the company presented financial targets for 2028 and discussed its growth strategies and product offerings. According to InvestingPro, analysts maintain a strong bullish consensus on CYBR, with price targets ranging from $303 to $500.
CyberArk Software, recognized for its cybersecurity solutions, expressed a confident outlook at the event, setting financial targets that Boolani considered achievable. The company’s strong position is reflected in its impressive 33.1% revenue growth and 79.2% gross profit margins in the last twelve months. The company projected a compound annual growth rate (CAGR) for revenue of less than 20% leading up to 2028, which was seen as conservative given its historical 18% five-year CAGR. The operating profit margin (OPM) and free cash flow margin (FCFM) expectations were higher than anticipated, falling in the mid to high 20% range.
Despite these positive indicators, Boolani noted that CyberArk’s current valuation metrics, including 11 times enterprise value to sales (EV/S) for 2026 and 46 times enterprise value to free cash flow (EV/FCF) for the same year, do not appear inexpensive. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with a price-to-book ratio of 7.57x. This valuation is in light of the company’s updated growth and profitability forecasts and the increasing focus on a seat-based model. For deeper insights into CYBR’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Investors continue to debate the potential for machine and agentic AI in the cybersecurity sector, as well as CyberArk’s ability to compete effectively with its product portfolio. However, Boolani and her team at Citi remain optimistic about CyberArk’s prospects. They believe the company is well-positioned to capture a larger share of the total addressable market (TAM) with its core products and sees potential for growth in adjacent identity markets that could benefit from a trend toward software-as-a-service (SaaS) and subscription renewals.
Additionally, the possibility of maintenance conversions provides another opportunity for growth. CyberArk’s expansion of its product portfolio, including messages about next-generation AI (GenAI), is supported by what Boolani describes as the management’s consistent track record of execution.
The updated Citi estimate (CitiE) and the new price target derivation, which equally weighs EV/S and EV/FCF metrics, underpin the increased price target of $450.00. This adjustment reflects Citi’s confidence in CyberArk’s strategy and market position.
In other recent news, CyberArk Software has been the focus of several analyst reviews following its Investor and Analyst Day events. RBC Capital Markets maintained its Outperform rating with a price target of $481, citing CyberArk’s promising growth strategy in machine identity and agentless AI technologies. Meanwhile, Truist Securities reaffirmed a Buy rating and a $450 target, highlighting the company’s innovation and potential to capitalize on market trends. Stifel analysts also reiterated a Buy rating with a $444 target, noting CyberArk’s financial targets for 2028, including a projected 17.6% compound annual growth rate for Annual Recurring Revenue (ARR).
DA Davidson retained a Buy rating and a $475 target, expressing confidence in CyberArk’s growth trajectory and its solid market position. BTIG maintained a Buy rating with a $485 target, emphasizing the company’s strategic focus on Identity Governance and Administration (IGA) and the potential of Agentic AI. CyberArk’s recent acquisition of Zilla was highlighted as a significant move to expand its presence in the IGA market. Across these analyses, CyberArk’s long-term financial targets and its expansion into an $80 billion Total (EPA:TTEF) Addressable Market were common points of interest. The company’s strategic direction and robust product portfolio continue to receive positive feedback from various analysts.
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