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Investing.com - Oppenheimer downgraded CyberArk Software (NASDAQ:CYBR) from Outperform to Perform following the announcement of its acquisition by Palo Alto Networks (NASDAQ:PANW). The cybersecurity firm, currently valued at $20.69 billion, has seen its shares surge over 61% in the past year, with an impressive 8.65% gain just last week.
The research firm cited the expected timely closure of the acquisition as a key factor in its rating change, noting it does not anticipate additional bidders emerging for the cybersecurity company. According to InvestingPro data, CyberArk maintains robust gross profit margins of 77.91% and has achieved revenue growth of 35.12% over the last twelve months.
Oppenheimer indicated that while CyberArk shares currently trade below the implied transaction price set in the acquisition agreement, the potential upside remains insufficient to maintain an Outperform rating.
The downgrade coincided with CyberArk’s second-quarter results, which were released simultaneously with the acquisition announcement.
Oppenheimer updated its financial estimates for CyberArk to reflect these second-quarter results as part of its revised outlook for the company.
In other recent news, CyberArk Software announced its second-quarter results, surpassing consensus expectations across all financial metrics. The company reported total Annual Recurring Revenue (ARR) of approximately $1.275 billion, marking a 47% year-over-year growth, which exceeded Wall Street’s forecast of about $1.25 billion. Additionally, CyberArk is set to be acquired by Palo Alto Networks in a cash and stock transaction valued at approximately $25 billion. This acquisition aims to enhance Palo Alto’s platform offerings by integrating a new identity security platform. Following these announcements, DA Davidson raised its price target for CyberArk to $518 while maintaining a Buy rating. Similarly, Mizuho (NYSE:MFG) increased its price target to $500, maintaining an Outperform rating. However, RBC Capital downgraded CyberArk to Sector Perform, despite raising its price target to $448. These developments reflect significant movements in CyberArk’s market positioning and future prospects.
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