Bitcoin set for a rebound that could stretch toward $100000, BTIG says
Investing.com - Jefferies downgraded CyberArk Software (NASDAQ:CYBR) from Buy to Hold on Friday, maintaining a price target of $480.00. The stock is currently trading at $458.59, with InvestingPro data showing it has gained 37.65% year-to-date and 43.86% over the past year. Notably, the RSI suggests the stock is in oversold territory, one of several insights available through InvestingPro’s comprehensive analysis.
The downgrade comes as Palo Alto Networks updated its expected timeline for closing the CyberArk acquisition to the third quarter of fiscal year 2026, ending April 30, 2026, earlier than the previously announced second half of fiscal year 2026, which would have ended July 31, 2026.
Regulatory progress has been moving forward, with Palo Alto Networks receiving early termination of the Hart-Scott-Rodino Antitrust Improvements Act waiting period on September 24, marking a key regulatory approval for the acquisition. CyberArk shareholders voted in favor of the acquisition on November 13.
Palo Alto Networks entered a definitive agreement to acquire CyberArk on July 30 in a deal valued at approximately $25 billion at the time of announcement. The acquisition valued CyberArk at 16 times its enterprise value to 2026 revenue, compared to 12 times based on prices as of July 28.
The acquisition represents Palo Alto Networks’ strategy to expand its cybersecurity platform, particularly by incorporating CyberArk’s identity security capabilities, which Jefferies identifies as one of the growing areas within the cybersecurity sector. CyberArk has demonstrated impressive financial performance with 43.26% revenue growth in the last twelve months and a strong gross profit margin of 76.15%. InvestingPro analysis indicates the company is currently overvalued compared to its Fair Value, with 15+ additional ProTips and a detailed Pro Research Report available for subscribers seeking deeper insights into this acquisition target.
In other recent news, CyberArk Software Ltd. reported impressive third-quarter financial results, with revenue increasing by 43% year-over-year to $342.8 million, surpassing the consensus estimate of $328 million. The company also posted adjusted earnings per share of $1.20, exceeding analyst expectations of $0.93. Furthermore, CyberArk achieved record net new Annual Recurring Revenue (ARR) of $68 million for the quarter, a 16% increase from the previous year, while total ARR climbed 45% year-over-year to $1.341 billion. These results reflect strong customer adoption of CyberArk’s identity security solutions.
In addition, CyberArk shareholders have approved the company’s acquisition by Palo Alto Networks, with approximately 99.8% support. The transaction is anticipated to close in the second half of Palo Alto Networks’ fiscal year 2026, pending regulatory approvals. Meanwhile, CyberArk has released new tools to help organizations prepare for upcoming reductions in Transport Layer Security (TLS) certificate lifespans, which are set to decrease from 398 days to 47 days by 2029. This change will require more frequent certificate renewals, impacting IT costs for organizations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.