China smartphone shipments slumped in June on inventory overhang: Jefferies
On Wednesday, KeyBanc Capital Markets sustained its optimistic stance on CyberArk Software (NASDAQ:CYBR), maintaining an Overweight rating with a $425.00 price target. The affirmation follows CyberArk’s first-quarter results, which surpassed expectations in annual recurring revenue (ARR). With impressive revenue growth of 35% and gross profit margins of nearly 78%, the company’s performance has been robust. According to InvestingPro data, analysts remain bullish, with price targets ranging from $352 to $500. The company’s 2025 ARR guidance remains unchanged, signaling management’s cautious approach in light of macroeconomic factors, despite no observed changes in business performance.
CyberArk’s first-quarter performance aligns with similar positive outcomes from cybersecurity peers like Check Point Software Technologies (NASDAQ:CHKP), Fortinet (NASDAQ:FTNT), and Cloudflare (NYSE:NET). With a market capitalization of $17.9 billion and a strong financial health score rated as "GOOD" by InvestingPro, the company maintains a solid position in the cybersecurity sector. KeyBanc’s analysis indicates that CyberArk’s net new ARR organic growth was approximately flat year-over-year but showed a slight increase after adjusting for foreign exchange impacts.
The company’s focus on non-human identities is gaining traction, as evidenced by nine of the top ten deals involving Venafi solutions and/or secrets management. Management has indicated that these products could potentially boost revenue by 1.5 to 2 times compared to human identity solutions. This momentum is consistent with trends identified in KeyBanc’s field research.
CyberArk’s robust performance is attributed to several factors including strong execution, prioritization of identity security, sustained growth in core privileged access management (PAM), and rising demand for non-human identity solutions. Additionally, CyberArk is recognized for its leadership in securing agentic artificial intelligence.
Despite the company’s strong quarter, KeyBanc’s estimates for CyberArk remain largely unchanged. The guidance provided by CyberArk implies that organic net new ARR is expected to decline by a high single-digit percentage year-over-year for the rest of the year, a forecast that KeyBanc views as conservative. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value, though analysts maintain positive expectations with 12 recent upward earnings revisions. The reiterated price target of $425 reflects KeyBanc’s continued confidence in CyberArk’s market position and future prospects. For deeper insights into CyberArk’s valuation and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, CyberArk Software has reported impressive first-quarter results for fiscal year 2025, with a remarkable 43% year-over-year increase in quarterly revenue, reaching $317.6 million and surpassing the anticipated $305.3 million consensus. The company’s Annual Recurring Revenue (ARR) surged by 50% from the previous year, reaching $1,215 million. Non-GAAP earnings also exceeded expectations at $0.98 per share, compared to the consensus estimate of $0.79. In light of these results, JMP analysts reaffirmed their Market Outperform rating with a $480 price target, while BofA Securities maintained a Buy rating and a $500 price target, citing CyberArk’s solid operational framework.
BTIG analyst Gray Powell adjusted the price target to $425 from $485 but maintained a Buy rating, highlighting CyberArk’s ARR growth as the best in two years. DA Davidson analyst Rudy Kessinger increased the price target to $435 from $415, reiterating a Buy rating and expressing confidence in the company’s performance. TD Cowen also maintained a Buy rating with a $450 price target, emphasizing CyberArk’s flawless execution and platform expansion. These analysts’ ratings and price targets reflect a strong belief in CyberArk’s strategic direction and growth potential within the cybersecurity sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.