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On Tuesday, JPMorgan analysts revised their outlook on CyberArk Software (ETR:SOWGn) (NASDAQ: NASDAQ:CYBR), increasing the price target from $375.00 to $431.00 while maintaining an Overweight rating. The company, currently valued at $19.1 billion, has demonstrated impressive execution with revenue growth of 30.3% and industry-leading gross profit margins of 81.1%. According to InvestingPro analysis, while the stock is trading near its 52-week high of $394.31, technical indicators suggest it may be in overbought territory. They also pointed to the company’s expansion into adjacent markets and robust platform demand as factors contributing to its growth potential.
CyberArk’s recent acquisition of Venafi was also noted as a strategic move, positioning the company well in the machine identity market at a time when enterprise risk assessment is increasingly focused on agentic adoption. Despite the low expectations for Venafi, JPMorgan analysts believe that its integration could accelerate CyberArk’s growth to match corporate averages sooner than anticipated.
The analysts expect management to reaffirm growth targets for the year, given the early stages of Venafi’s integration efforts. They predict that contributions from the Machine Identity segment could start to materialize in the second quarter, as the pipeline for such deals typically takes six to nine months to develop. With the company’s upcoming earnings report just days away, investors can access comprehensive analysis and real-time updates through InvestingPro’s detailed research reports, which provide deep-dive analysis of 1,400+ top stocks.
JPMorgan’s extended outlook for CyberArk is also favorable, with FY27 estimates reflecting $2 billion in annual recurring revenue (ARR) and $500 million in free cash flow (FCF), based on assumptions that they consider to be conservative. The firm’s strong unit economics and potential for meaningful margin expansion and cash flow generation support this view.
The company is set to report earnings on February 13, 2024, and will hold its analyst day on February 24, 2025. CyberArk remains a top pick for JPMorgan and is included on their Analyst Focus list. The increased price target to $431 reflects higher peer multiples and the firm’s positive outlook for the company’s performance.
In other recent news, CyberArk Software has been the focus of several analyst upgrades. Guggenheim has raised its price target for CyberArk to $417, citing expectations that the company will surpass its fourth-quarter subscription and total revenue targets. This optimism is based on the potential for significant upside and a modest increase to Annual Recurring Revenue (ARR). Piper Sandler also increased its price target for CyberArk to $440, expressing confidence in the company’s potential to accelerate the growth of recently acquired Venafi in 2025 and beyond.
UBS analyst Roger Boyd increased the price target for CyberArk to $440, highlighting CyberArk as a top pick heading into 2025. Boyd’s optimism is supported by positive feedback from partner checks for CyberArk’s fourth quarter, the full year 2025, and the company’s integration with Venafi. Rosenblatt Securities also updated its outlook on CyberArk, increasing the price target to $415 based on positive indicators from partner discussions and a robust product pipeline.
In a strategic move, CyberArk has also announced an integration with SentinelOne (NYSE:S)’s Singularity, an AI-powered cybersecurity platform. This collaboration aims to bolster endpoint threat detection and response by merging SentinelOne’s Singularity Endpoint solution with CyberArk’s Endpoint Privilege Manager. These are the latest developments in CyberArk’s ongoing efforts to enhance its cybersecurity offerings and market position.
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