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Investing.com - DA Davidson has raised its price target on CyberArk Software (NASDAQ:CYBR) to $518.00 from $465.00 while maintaining a Buy rating following the company’s acquisition announcement and strong quarterly results. The company has shown impressive momentum, with a 16% surge in the past week and maintaining strong gross profit margins of 78%.
The price target increase comes after CyberArk reported second-quarter results that exceeded consensus expectations across all financial metrics on Thursday. According to InvestingPro data, the company has demonstrated robust revenue growth of 35% over the last twelve months, though current trading multiples suggest the stock may be overvalued relative to its Fair Value.
CyberArk also announced an agreement to be acquired by Palo Alto Networks (NASDAQ:PANW), prompting the company to withdraw its guidance for calendar year 2025 and cancel its scheduled second-quarter earnings call.
DA Davidson noted that CyberArk’s stock price will be largely determined by Palo Alto Networks’ stock performance in the interim period due to the significant stock-for-stock component of the acquisition deal.
The firm tied its new CyberArk price target of $518 to its Palo Alto Networks price target of $215, maintaining a Buy rating on both companies.
In other recent news, CyberArk Software reported a significant increase in its Annual Recurring Revenue, which reached approximately $1.275 billion, marking a 47% growth year-over-year. This figure surpassed Wall Street’s forecast of about $1.25 billion. Following these results and an acquisition announcement, Mizuho (NYSE:MFG) raised its price target for CyberArk to $500, maintaining an Outperform rating. Meanwhile, Palo Alto Networks has confirmed its acquisition of CyberArk for approximately $25 billion in a cash and stock transaction. This acquisition is expected to enhance Palo Alto Networks’ platform capabilities in identity security. In light of the acquisition, RBC Capital downgraded CyberArk from Outperform to Sector Perform, adjusting its price target to $448 from $420. Similarly, Piper Sandler downgraded CyberArk from Overweight to Neutral, while raising its price target to $448 from $440, citing the acquisition as a compelling addition to Palo Alto Networks’ portfolio. These developments have been approved by the boards of both companies.
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