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Investing.com - Piper Sandler downgraded CyberArk Software (NASDAQ:CYBR) from Overweight to Neutral while raising its price target to $448.00 from $440.00 following the announcement of Palo Alto Networks (NASDAQ:PANW)’ acquisition of the company. The stock has shown remarkable strength, delivering a 70% return over the past year and currently trading near its 52-week high of $452.
The rating change comes directly after Palo Alto Networks revealed its plans to acquire CyberArk, which Piper Sandler described as "a compelling & complementary asset" and "one of the better stories in cyber."
CyberArk also released its second-quarter results alongside the acquisition announcement, which Piper Sandler characterized as "another solid quarter of execution" from the company.
The firm adjusted its price target to $448.00, reflecting its view that the acquisition will likely close on the existing terms that were announced.
Piper Sandler expressed confidence that CyberArk "will continue to succeed under the broader PANW platform" once the acquisition is completed.
In other recent news, CyberArk Software has been the focus of several significant developments. The company announced it will be acquired by Palo Alto Networks in a transaction valued at approximately $25 billion, combining cash and stock. This acquisition includes $45 in cash and 2.2005 shares of Palo Alto Networks for each CyberArk share, with about 90% of the deal’s value tied to Palo Alto Networks’ stock performance. Following this announcement, multiple analysts have downgraded CyberArk’s stock rating. UBS, Guggenheim, BTIG, and William Blair all shifted their ratings from Buy to Neutral, citing the acquisition as a key factor in their decisions. William Blair noted that the acquisition would bolster Palo Alto Networks’ platform strategy by integrating identity security. However, Cantor Fitzgerald maintained an Overweight rating on CyberArk, setting a price target of $420.00 based on a 2026 estimated EV/Sales multiple. These recent developments highlight the significant impact of the acquisition on CyberArk’s market position and future outlook.
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