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Investing.com - JMP Securities downgraded CyberArk Software (NASDAQ:CYBR) from Market Outperform to Market Perform following the company’s pending acquisition by Palo Alto Networks. The stock has shown remarkable strength, delivering a 73% return over the past year and currently trading near its 52-week high of $493.85.
The rating change comes after both companies’ boards approved Palo Alto’s offer of $45 in cash plus 2.2005 Palo Alto Networks shares for each CyberArk share.
JMP removed its previous $480 price target for CyberArk, noting that the stock currently trades modestly above that prior target.
The firm believes the current valuation is fair, with CyberArk trading at a CY26E EV/revenue multiple of 15.9x, which represents a premium to the peer group mean multiple of 15.0x.
JMP does not anticipate a superior unsolicited proposal emerging and expects the transaction to close according to the announced timeline.
In other recent news, Palo Alto Networks reported strong fourth-quarter results, with remaining performance obligations showing a 24% year-over-year growth, up from 19% in the previous quarter. This impressive performance led DA Davidson to reiterate its Buy rating on the company, maintaining a price target of $215.00. Meanwhile, CyberArk Software has been in the spotlight due to its pending acquisition by Palo Alto Networks. Cantor Fitzgerald reiterated an Overweight rating on CyberArk, citing steady second-quarter results but no updated guidance due to the acquisition. Oppenheimer has downgraded CyberArk from Outperform to Perform, expecting the acquisition to close without additional bidders. CyberArk also received Cloud Service Provider certification from the Dubai Electronic Security Center, allowing it to offer cloud services to government entities in Dubai. BTIG maintained a Neutral rating on CyberArk, as noted in a recent research update. These developments highlight the ongoing strategic movements and analyst perspectives surrounding Palo Alto Networks and CyberArk Software.
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