CyberArk stock holds Buy rating, $425 target at Truist Securities

On Tuesday, Truist Securities maintained a Buy rating on CyberArk Software (NASDAQ:CYBR), with a steady price target of $425.00. Analyst Junaid Siddiqui from Truist highlighted CyberArk’s first-quarter results, which surpassed Wall Street expectations on several critical financial metrics. The company, currently valued at $18.18 billion, has demonstrated impressive revenue growth of 33.1% over the last twelve months, according to InvestingPro data. The company reported an Annual Recurring Revenue (ARR) of $1.215 billion in the first quarter of fiscal year 2025, marking a 50% increase from the previous year and outperforming the consensus estimate of $1.202 billion.

CyberArk’s revenue for the quarter was $317.6 million, a 43% increase year-over-year, exceeding both the consensus estimate of $305.3 million and the company’s own guidance of $301 million to $307 million. This growth was attributed to robust performance in the machine identity business, with significant contributions from its Venafi acquisition and Secrets Management solutions. The company maintains an impressive gross profit margin of 79.18%, as reported by InvestingPro, which highlights 12 additional key insights about CYBR’s performance.

Despite these strong results, CyberArk’s stock experienced a slight downturn, trading down approximately 4%. Currently trading at $367.66, the stock sits between its 52-week range of $223.41 to $421.00. The company has also reiterated its ARR guidance for fiscal year 2025, forecasting between $1.41 billion and $1.42 billion, which represents a 21% growth year-over-year. According to InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value, despite maintaining a GOOD overall financial health score. The cautious outlook is likely a result of conservative guidance in light of the current macroeconomic environment.

Siddiqui points to CyberArk’s comprehensive management of various identity types across multiple deployment environments, the increasing number of use cases, continuous technological innovation, and a high percentage of recurring revenue as factors that position the company for sustained growth in the future. For a deeper understanding of CYBR’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively on InvestingPro, covering over 1,400 top US stocks. Further insights are expected to be shared during the company’s earnings call, scheduled for 8:30 AM ET, after which Truist Securities may update their financial model for CyberArk.

In other recent news, CyberArk Software has been the subject of several analyst reports highlighting its earnings and strategic developments. Citizens JMP reaffirmed its Market Outperform rating on CyberArk, maintaining a $480 price target, based on the company’s strong position in the identity security sector and its innovative AI deployment. Cantor Fitzgerald also expressed confidence in CyberArk, maintaining an Overweight rating with a $400 price target, citing potential for new customer acquisition and cross-selling opportunities within its Privileged Access Management services. Meanwhile, DA Davidson adjusted their price target for CyberArk to $415 from $475, although they maintained a Buy rating, reflecting a recalibration in response to market dynamics.

Following the Impact ’25 user conference in Boston, UBS analysts upheld their Buy rating and $480 price target for CyberArk. The conference introduced new solutions like Secure AI Agents, which received positive feedback from customers and partners. Despite economic uncertainties, UBS noted no significant deal hesitation, reinforcing CyberArk’s sustained leadership in Privileged Access Management. Analysts from Citizens JMP see a promising future for CyberArk, with expectations of growth in its enterprise value to revenue multiple. These developments collectively underscore CyberArk’s strategic initiatives and its continued prominence in the cybersecurity landscape.

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