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On Friday, KeyBanc Capital Markets adjusted its outlook on CyberArk Software (NASDAQ:CYBR), increasing the price target to $485.00 from the previous $400.00, while maintaining an Overweight rating on the shares. According to InvestingPro data, the stock is currently trading near its 52-week high of $418.49, having delivered impressive returns of 57.11% over the past year. Based on InvestingPro's Fair Value analysis, the stock appears to be trading above its intrinsic value. The adjustment follows CyberArk's announcement of a robust fourth-quarter performance, which included an accounts receivable (ARR) figure that surpassed expectations by $17 million, or $19 million when excluding foreign exchange impacts. This ARR result represented the largest beat ever in KeyBanc's model.
CyberArk's guidance for 2025 also exceeded market consensus, projecting an ARR of $1.415 billion, which indicates a year-over-year growth of 21% and is approximately $25 million higher than anticipated, or about $20 million on an organic basis. The company has demonstrated strong execution with revenue growth of 33.1% and maintains impressive gross profit margins of 79.18%. InvestingPro subscribers can access 18 additional key insights about CyberArk's financial health and growth prospects. The company's strength in the quarter was noted to be broad-based, with significant contributions from various segments including Privileged Access Management (PAM), modern PAM (zero standing privileges), workforce, secrets management, and Venafi products.
Additionally, the top three deals for CyberArk in the quarter were with new clients, each of whom adopted the platform extensively. On the same day, CyberArk revealed its acquisition of Identity Governance and Administration (IGA) vendor Zilla. This strategic move is aimed at targeting cloud-native and Software (ETR:SOWGn) as a Service (SaaS) workloads and expanding into smaller enterprises. KeyBanc views this acquisition favorably, as it positions CyberArk as a comprehensive identity platform that spans PAM, IGA, and Access Management (AM) for both human and machine identities. However, the firm also acknowledges the competitive nature of the IGA market compared to PAM and secrets management.
KeyBanc's positive stance on CyberArk is reinforced by the company's strong execution, the prioritization of identity security, sustained growth in core PAM and emerging products, significant opportunities to accelerate the integration of recently acquired Venafi, and a conservative guidance that suggests organic net new ARR may decrease by roughly 5% year-over-year. The raised price target reflects KeyBanc's higher estimates based on CyberArk's recent performance and outlook. With a market capitalization of $20.42 billion and strong YTD returns of 24.36%, investors seeking detailed analysis can access CyberArk's comprehensive Pro Research Report, available exclusively on InvestingPro, which provides in-depth insights into the company's valuation, growth metrics, and future prospects.
In other recent news, CyberArk Software has been making significant strides in the cybersecurity industry, as indicated by recent developments. The company's fourth-quarter performance was notably strong, with its Annual Recurring Revenue (ARR) surpassing consensus estimates, partly due to contributions from its recent acquisitions, Venafi and Zilla. Analysts from William Blair, Jefferies, JMP Securities, Guggenheim, and DA Davidson have all maintained positive ratings on the company, with multiple firms raising their price targets for the company's stock.
CyberArk's fourth-quarter revenue reached $314.4 million, representing a year-over-year increase of 41%, and non-GAAP earnings hit $0.80 per share, beating the consensus projection. The company's total ARR exhibited robust growth, increasing by 51% compared to the same period in the previous year. These strong financials are driving positive outlooks from analysts, many of whom are raising their price targets for the company.
CyberArk's recent acquisitions of Venafi and Zilla have expanded its capabilities and broadened the appeal of its platform. These additions are seen as enhancing the company's value proposition and present larger upsell opportunities. Analysts believe that these developments position CyberArk as a difficult-to-replace partner for companies aiming to bolster their zero-trust security architectures.
Analysts expect CyberArk's growth to continue, with the company's 2025 ARR guidance indicating a 21% year-over-year increase. However, some analysts suggest that this forecast could be conservative, and actual growth may be higher. This optimism is underpinned by the potential for expansion in Privileged Access Management (PAM) in the near term, and Machine Identity/IGA over the long term. These are the latest developments in CyberArk's ongoing efforts to strengthen its position in the cybersecurity industry.
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