CyberArk shares rise following quantum computing risks report

Published 17/03/2025, 13:18
CyberArk shares rise following quantum computing risks report

On Monday, shares of CyberArk (NASDAQ:CYBR) witnessed an uptick after a recent industry report by Cantor Fitzgerald highlighted significant future cybersecurity challenges. The report, released on Saturday, March 15, 2025, by Cantor Fitzgerald analyst Jonathan Ruykhaver, focused on the Security & Infrastructure Software (ETR:SOWGn) sector, with particular attention given to the risks posed by quantum computing to current encryption methods.

The report referenced KeyFactor, a private machine identity management platform and a competitor to CyberArk’s Venafi solution, which held its Tech Days conference last week. The event brought to light the potential threat that quantum computing could pose to widely used encryption algorithms, with experts suggesting that quantum computers capable of breaking these algorithms might be developed within the next decade.

In anticipation of these advancements, the National Institute of Standards and Technology (NIST) has announced that by 2035, several current encryption algorithms, including RSA, ECDSA, EdDSA, DH, and ECDH, will be considered obsolete and has approved three post-quantum encryption standards. Organizations are being urged to transition to these new standards, a process that is expected to be complex and could extend over a decade.

Additionally, the conference discussed the adoption of artificial intelligence, revealing that despite significant interest, the actual utilization of AI technology is relatively minimal. A study cited by Reuters found that only 7% of Americans use AI on a daily basis, indicating that the journey towards widespread AI adoption is still in its early stages.

CyberArk’s stock movement on Monday reflects the market’s recognition of the importance of evolving cybersecurity measures. As the industry grapples with the implications of quantum computing and the slow adoption of AI, companies like CyberArk are at the forefront of developing solutions to protect against future technological threats. Investors seeking to navigate the complex cybersecurity landscape can access detailed valuation metrics, growth forecasts, and expert analysis through InvestingPro’s comprehensive research reports, which transform complex Wall Street data into actionable intelligence.

In other recent news, Fortinet (NASDAQ:FTNT) has been the focus of several analyst updates following its strong financial performance. Erste Group initiated coverage on Fortinet with a Buy rating, citing the company’s impressive return on equity and robust profitability metrics. The firm anticipates Fortinet’s revenue to significantly increase by 2025, with projections between $6.7 and $6.9 billion. Citi analyst Fatima Boolani raised the price target for Fortinet to $115, maintaining a Neutral rating, and highlighted the company’s stable performance and strong product billings. TD Cowen’s Shaul Eyal also adjusted Fortinet’s price target to $135, maintaining a Buy rating, driven by Fortinet’s successful fourth-quarter performance and growth in its Security Operations segment.

RBC Capital Markets raised Fortinet’s price target to $115, maintaining a Sector Perform rating, and noted the company’s solid quarterly results and potential upsell opportunities. BMO Capital Markets increased its price target to $122, while keeping a Market Perform rating, following Fortinet’s strong quarter supported by an improving firewall market. However, BMO expressed reservations about Fortinet’s fiscal year 2025 guidance, suggesting it might be conservative despite anticipated refresh activities. These updates reflect a generally positive outlook on Fortinet’s financial health and strategic positioning, with various analysts adjusting their price targets upward in response to the company’s recent performance.

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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