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On Friday, JMP Securities enhanced its outlook on CyberArk Software (NASDAQ:CYBR) shares, raising the price target to $480 from the previous $390. This adjustment comes in the wake of CyberArk's impressive financial results for the fourth quarter of fiscal year 2024. The cybersecurity company outperformed expectations, reporting quarterly revenue of $314.4 million, which surpassed the consensus estimate of $301.2 million. This figure represents a year-over-year increase of 41%. The company's strong execution is reflected in its impressive gross profit margins of 81.07%, according to InvestingPro data.
The company also demonstrated robust growth in total Annual Recurring Revenue (ARR), which soared by 51% compared to the same period in the previous year. Additionally, CyberArk's non-GAAP earnings reached $0.80 per share, outpacing the consensus projection of $0.72 per share. According to JMP Securities, these strong financials have been a driving factor behind the firm's decision to maintain a Market Outperform rating for CyberArk. InvestingPro analysis reveals 18 additional key insights about CyberArk's financial health and growth prospects, available exclusively to subscribers.
Following the announcement of the fourth-quarter results, CyberArk's stock experienced a significant uptick, closing with an approximate 8.8% gain. The positive investor sentiment is further reflected in the stock's year-to-date performance, which shows an impressive rise of around 24%. This uptrend notably outpaces the Russell 3000 index, which has seen an increase of about 4.2% over the same period. With a market capitalization of $20.42 billion and trading near its 52-week high of $418.49, InvestingPro's Fair Value analysis suggests the stock is currently overvalued. Get detailed valuation insights and access to the comprehensive Pro Research Report covering CyberArk and 1,400+ other US stocks.
The analyst at JMP Securities highlighted CyberArk's achievement of the Rule of 40—a financial metric that balances growth and profitability—on a full-year basis for FY24, a milestone that was reached a year earlier than planned. This accomplishment underscores the company's operational efficiency and its ability to deliver value to shareholders.
In summary, CyberArk Software's strong financial performance in the fourth quarter of FY24 has led to a positive reassessment by JMP Securities, with an increased price target and continued confidence in the company's market standing.
In other recent news, CyberArk Software has been the focus of several analysts' reports. Guggenheim raised the company's price target from $417.00 to $455.00, citing the company's surpassing of fourth-quarter 2024 expectations and a 2025 forecast that exceeds predictions. CyberArk's acquisition of Identity Governance and Administration (IGA) specialist Zilla also influenced this decision. DA Davidson increased CyberArk's target to $475, highlighting the company's strong financial performance and the strategic acquisition of Zilla Security. This was echoed in a separate report by DA Davidson, where the firm maintained a Buy rating on the company's shares.
Barclays (LON:BARC) also raised its price target on CyberArk to $450 due to the company's strong growth, surpassing the $1 billion annual recurring revenue (ARR) milestone, and the acquisition of Zilla Security. Meanwhile, Cantor Fitzgerald increased its price target on CyberArk's shares from $415 to $445, noting the company's strong execution in business operations and robust growth projections for financial year 2025.
These recent developments underscore the analysts' confidence in CyberArk's growth trajectory and strategic acquisitions, all of which position the company for further success. However, it is important to note that these are analysts' expectations and not guaranteed outcomes.
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