CyberArk stock price target raised to $500 from $450 at Mizuho

Investing.com - Mizuho (NYSE:MFG) raised its price target on CyberArk Software (NASDAQ:CYBR) to $500 from $450 on Thursday, while maintaining an Outperform rating on the stock. The company’s stock, currently trading at $420.85, has shown impressive momentum with a 30.63% gain year-to-date, though InvestingPro analysis suggests the stock is trading above its Fair Value.

The price target increase follows CyberArk’s second-quarter results and acquisition announcement. The company reported total Annual Recurring Revenue (ARR) of approximately $1.275 billion, representing 47% year-over-year growth, which exceeded Wall Street’s forecast of about $1.25 billion. This strong performance aligns with the company’s broader growth trajectory, with revenue growing at 35.12% and maintaining impressive gross profit margins of 77.91%.

CyberArk’s profit margins also surpassed analyst estimates in the quarter. The company has revoked its previous guidance and will not host its quarterly earnings call due to the pending transaction.

Mizuho noted that the acquirer is obtaining "a phenomenal asset at a very reasonable price," estimated at approximately 14-15 times CyberArk’s calendar year 2026 expected ARR. The transaction is expected to close in the second half of the acquirer’s fiscal year 2026.

While Mizuho indicated it does not anticipate significant regulatory issues with the deal, the firm acknowledged that a competitive bid remains possible, though "unlikely at this time."

In other recent news, Palo Alto Networks (NASDAQ:PANW) has confirmed its acquisition of CyberArk Software for approximately $25 billion in a cash and stock transaction. This strategic move is intended to enhance Palo Alto Networks’ platform by integrating a new identity security platform, as highlighted by CEO Nikesh Arora. The acquisition has been approved by both companies’ boards and represents a 26% premium to CyberArk’s share price prior to the announcement. Following the acquisition news, several analysts have adjusted their ratings for CyberArk. RBC Capital downgraded CyberArk from Outperform to Sector Perform, although it raised the price target to $448.00 from $420.00. Piper Sandler also downgraded the stock from Overweight to Neutral, increasing its price target slightly to $448.00 from $440.00. Similarly, UBS changed its rating from Buy to Neutral, raising the price target to $485.00 from $480.00. These developments reflect analysts’ reassessments in light of the acquisition.

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