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On Thursday, Guggenheim maintained a positive stance on CyberArk Software (NASDAQ:CYBR), lifting the company's price target from $417.00 to $455.00 while reiterating a Buy rating on the stock. Currently trading at $414.31 with a market capitalization of $20.42 billion, CyberArk has shown impressive momentum, according to InvestingPro data. The adjustment follows CyberArk's announcement of surpassing fourth-quarter 2024 expectations and providing a 2025 forecast that outpaces analyst predictions, particularly regarding its adjusted free cash flow (FCF) guidance.
CyberArk's recent acquisition of Identity Governance and Administration (IGA) specialist Zilla is also a contributing factor to the raised price target. The company's strong financial position, with more cash than debt on its balance sheet and an impressive gross profit margin of 81.07%, positions it well for such strategic moves. Although Zilla currently adds a modest $5 million in Annual Recurring Revenue (ARR), Guggenheim analysts believe its SaaS IGA solution and expertise will gain greater significance within the CyberArk ecosystem. This acquisition is expected to help CyberArk's enterprise customers deploy IGA more extensively and potentially venture into Machine IGA in the future.
The company's consistent performance is highlighted by its New ARR growth, which stood at 14% in the fourth quarter, mirroring the growth in the previous quarter and achieving this against a tougher comparison. This consistent New ARR growth over the past three years is unique to CyberArk within Guggenheim's coverage universe and is attributed to strategic product and market expansion coupled with steady execution.
CyberArk's financial health and strategic acquisitions are positioning the company for further success. With a strong revenue growth of 30.31% and highly favorable analyst consensus, the company shows promising momentum. Analysts at Guggenheim underscore their confidence in CyberArk's trajectory, as evidenced by the raised price target and sustained Buy rating. The firm's analysis suggests that CyberArk is poised to continue its growth trend, leveraging new product offerings and market opportunities. For deeper insights into CyberArk's valuation and growth metrics, including 16 additional ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, CyberArk Software has been the subject of multiple analyst upgrades. DA Davidson has raised its price target for CyberArk to $475, maintaining a Buy rating. This follows the company's impressive financial results, with the Annual Recurring Revenue (ARR) significantly above consensus and a 30% year-over-year growth in organic standalone ARR. The acquisition of Identity Governance and Administration startup Zilla Security has been highlighted as a strategic move for CyberArk.
Similarly, Barclays (LON:BARC) has increased its price target on CyberArk to $450, citing the company's strong growth and the addition of Zilla Security to its offerings. The company's ARR guidance for calendar year 2025, projecting a 21% year-over-year increase, was seen as conservative by both DA Davidson and Barclays. Cantor Fitzgerald also lifted its price target for CyberArk to $445, noting the company's robust growth.
Stifel analysts have raised their price target on CyberArk to $444, reiterating a Buy rating. This follows CyberArk's impressive fourth-quarter results, which surpassed expectations in key financial metrics. The company's expanding platform, which encompasses both human and non-human identities, was identified as a key strength. CyberArk's recent developments, including the strategic acquisition of Zilla Security and strong financial results, indicate a positive outlook for the company.
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