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Tuesday, CyberArk Software (NASDAQ:CYBR), currently trading at $374.73 with a market capitalization of $18.54 billion, maintained its Buy rating and $475.00 price target from DA Davidson following the company’s Investor Day event in Boston, Massachusetts. According to InvestingPro data, analysts maintain a strong bullish consensus on the stock, with price targets ranging from $303 to $500. The cybersecurity firm’s new CY28 targets were deemed approximately consistent with market expectations. DA Davidson expressed a positive outlook on CyberArk’s growth trajectory, citing the company’s conservative and potentially surpassable annual recurring revenue (ARR) compound annual growth rate (CAGR) of around 18%. This outlook is supported by the company’s impressive current revenue growth of 33.1% and gross profit margins of 79.18%, as reported by InvestingPro.
The research firm’s analysis suggests that a slightly higher ARR CAGR of over 20% might have been received more favorably by investors. However, the current targets were still seen as an indicator of CyberArk’s solid position in the market. DA Davidson highlighted the company’s strong performance, particularly the significant ARR growth among prominent clients and those purchasing multiple products.
The analyst’s commentary underscored the consolidation opportunity within Identity Security for CyberArk, noting that the entire platform is gaining considerable momentum. The traction is especially notable among large logos—industry jargon for well-known companies—and clients engaging with three to four or more of CyberArk’s products.
DA Davidson’s reiterated Buy rating and price target reflect a conviction in CyberArk’s potential to outperform within its sector. The firm’s appraisal came directly after participating in CyberArk’s Investor Day, where the company’s long-term financial and operational goals were presented to shareholders and analysts.
CyberArk’s strategic focus on Identity Security appears to be resonating with both customers and investors, as evidenced by the company’s robust ARR figures. DA Davidson’s continued support for CyberArk underscores the firm’s belief in the company’s market strategy and growth prospects.
In other recent news, CyberArk Software reported impressive financial results, with a significant year-over-year increase in Annual Recurring Revenue (ARR) of 51% and organic growth of 30% for the fourth quarter of 2024. The company’s revenue also rose notably, with a 41% increase reported and a 20% organic growth compared to the previous year. CyberArk’s guidance for fiscal year 2025 was higher than anticipated, indicating continued financial strength, as noted by Stifel analysts who raised their price target to $444. Additionally, BofA Securities increased their price target to $500, citing CyberArk’s strong positioning in the Identity Security market and its comprehensive solutions for human and machine identities.
CyberArk’s recent acquisitions, including Venafi and Zilla Security, have contributed to its growth, with Venafi enhancing top-line growth and being margin accretive. Citi analysts highlighted the company’s accelerating brand strength, particularly in converting its Venafi pipeline, and noted that new intellectual property from Zilla is expected to boost annual recurring revenue. Jefferies maintained a Buy rating with a $475 price target, expressing optimism about CyberArk’s growth potential in Privileged Access Management and expanding platform capabilities.
BTIG also reaffirmed a Buy rating, setting a price target of $485, and expressed a positive outlook on CyberArk’s long-term financial targets. The firm’s analysis suggested potential upside in areas like Agentic AI and the Identity Governance and Administration market. These developments reflect CyberArk’s strategic initiatives to strengthen its market position and capitalize on emerging opportunities in cybersecurity.
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