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Investing.com - UBS downgraded CyberArk Software (NASDAQ:CYBR) from Buy to Neutral while slightly raising its price target to $485.00 from $480.00 following news of the company’s planned acquisition. The stock has shown remarkable momentum, gaining nearly 70% over the past year and currently trading near its 52-week high of $452. InvestingPro data indicates the stock’s RSI suggests overbought conditions.
CyberArk confirmed Thursday it will be acquired by Palo Alto Networks (NASDAQ:PANW) in a $25 billion cash and stock transaction. The deal represents a 26% premium to CyberArk’s share price before the announcement. The cybersecurity firm, currently valued at $21.89 billion, boasts impressive gross profit margins of 78% and strong revenue growth of 35% year-over-year. For deeper insights into CyberArk’s valuation metrics and growth potential, check out the comprehensive analysis available on InvestingPro.
The cybersecurity firm also pre-announced its second-quarter earnings results ahead of schedule. CyberArk has canceled its previously scheduled August 7 earnings call following the acquisition news.
UBS analyst Roger Boyd cited the acquisition as the primary reason for the downgrade in his research note, stating: "We downgrade CYBR shares to Neutral."
The companies expect the acquisition to close in the second half of Palo Alto Networks’ fiscal year 2026, which ends in July of that year.
In other recent news, CyberArk Software has entered into an acquisition agreement with Palo Alto Networks, valuing CyberArk at approximately $25 billion in a combined stock and cash transaction. As part of the deal, CyberArk shareholders will receive $45 per share in cash along with 2.2005 shares of Palo Alto Networks common stock for each CyberArk share. Following this announcement, several analyst firms, including Guggenheim, BTIG, and William Blair, downgraded CyberArk’s stock rating to Neutral, citing the acquisition’s impact on CyberArk’s share price, which is now heavily dependent on Palo Alto Networks’ stock performance. Guggenheim specifically removed its price target for the company, while William Blair noted the acquisition would strategically enhance Palo Alto Networks’ platform. In contrast, Cantor Fitzgerald reiterated its Overweight rating on CyberArk with a price target of $420, based on a 2026 estimated EV/Sales multiple. Additionally, CyberArk appointed Kathy Cullen-Cote as its new Chief People Officer, succeeding Ruth Shaked, who is retiring after 12 years. Cullen-Cote previously held HR leadership roles at Teradata (NYSE:TDC) and PTC (NASDAQ:PTC). These developments highlight significant changes and strategic decisions impacting CyberArk Software.
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