CyberArk stock rating reiterated at Buy by BTIG, citing strong PAM demand

Investing.com - BTIG has reiterated its Buy rating and $425.00 price target on CyberArk Software (NASDAQ:CYBR), citing strong demand for the company’s Privileged Access Management (PAM) solutions. The stock, currently trading at $385.58 with a market cap of $19.39 billion, has shown impressive momentum with a 48.5% return over the past year. According to InvestingPro analysis, CyberArk maintains robust gross profit margins of 77.9%.

The research firm based its assessment on recent discussions with five industry contacts, including four partners and one industry analyst, who provided "almost 100% positive" feedback on the PAM space with a focus on CyberArk. This positive sentiment aligns with the company’s strong revenue growth of 35.1% over the last twelve months, as reported by InvestingPro, which offers 12 additional key insights about CyberArk’s performance and prospects.

BTIG noted that demand for core PAM capabilities remains strong both within large enterprise customers and in the mid-market, with two of the five contacts reporting clear improvement in conditions while the others maintained a constructive outlook.

The firm highlighted particular strength in Venafi/Machine Identity products this quarter, along with positive commentary on CyberArk’s Secrets Management and Secure Cloud Access offerings.

While Wall Street currently projects CyberArk’s Q2 net new Annual Recurring Revenue (ARR) at $52 million, BTIG suggested the company could potentially deliver closer to $62 million in an upside scenario. Analysts expect continued strong performance, with revenue projected to grow 32% in FY2025, and the company is anticipated to achieve profitability this year.

In other recent news, CyberArk Software has made significant advancements in its offerings and market positioning. The company announced the availability of its Secure Cloud Access MCP Server and Agent Guard tools in the new AWS Marketplace AI Agents and Tools category. These tools are designed to enhance security for AI systems by limiting credential exposure and enforcing stricter access controls. Meanwhile, Panasonic (OTC:PCRFY) Information Systems Co. Ltd. has implemented CyberArk’s Identity Security Platform to secure privileged access across its servers, as part of its digital transformation initiative. This deployment automates access management and provides an audit trail for improved security oversight.

On the analyst front, CyberArk has received positive attention, with Arete maintaining a Buy rating and a price target of $585, citing the company’s role in cybersecurity. Jefferies also raised its price target for CyberArk to $480, maintaining a Buy rating and highlighting the company’s growth potential and strong positioning in a high-threat environment. Similarly, DA Davidson increased its price target to $465, also keeping a Buy rating, and noted positive feedback from CyberArk’s management regarding the company’s performance and strategic initiatives. These developments reflect a strong consensus among analysts on CyberArk’s potential for continued growth and market success.

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