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On Monday, Piper Sandler showed confidence in CyberArk Software 's (NASDAQ:CYBR) future performance by increasing the company's price target from $345.00 to $380.00. The firm retained its Overweight rating on the stock. This adjustment stems from a higher terminal free cash flow (FCF) multiple, which reflects recent valuation changes within CyberArk's peer group. According to InvestingPro data, the stock has delivered an impressive 60.34% return over the past year and is currently trading near its 52-week high of $348.02.
The optimism towards CyberArk is partly due to the anticipated success of integrating Venafi, a cybersecurity company acquired by CyberArk. Analysts at Piper Sandler expect CyberArk to continue the strong momentum it has demonstrated in recent years throughout 2025. They believe the company's narrative will focus on the successful integration and performance of Venafi.
InvestingPro data reveals strong fundamentals supporting this outlook, with revenue growing at 30.31% and an impressive gross profit margin of 81.07%. InvestingPro subscribers have access to 12 additional key insights about CyberArk's growth potential and financial health.
Additionally, a recent security breach at one of CyberArk's main Privileged Access Management (PAM) competitors, BeyondTrust, is likely to benefit CyberArk competitively. Such incidents can shift market preference towards companies perceived as having more robust security solutions. With a market capitalization of $14.79 billion and strong financial health score from InvestingPro, CyberArk appears well-positioned to capitalize on this opportunity.
Piper Sandler's price target is based on a discounted cash flow (DCF) analysis. The DCF assumes a five-year revenue compound annual growth rate (CAGR) of 25.9% through the calendar year 2029, with a free cash flow margin of 26.5% in the same year. The terminal enterprise value (EV) to FCF multiple is set at 30x, up from the previous 27x, with a discount rate of 17% and fully diluted shares outstanding projected at 48 million.
CyberArk has been recognized for its expertise in privileged access security, a critical area for cybersecurity as it manages special access and permissions to secure an organization's most sensitive data and systems. The company's growth and strategic acquisitions like Venafi are part of its broader efforts to enhance its cybersecurity offerings. Analysts maintain a bullish consensus on the stock, with price targets ranging from $267.12 to $410.00, though InvestingPro analysis suggests the stock may be trading above its Fair Value.
In other recent news, CyberArk Software (ETR:SOWGn) has seen an upward revision of its stock price target by DA Davidson to $390, while maintaining a Buy rating.
This follows a recent security breach at the US Treasury Department, which has increased the focus on robust cybersecurity solutions, potentially benefiting CyberArk. Furthermore, Rosenblatt Securities sees this incident as an opportunity for CyberArk to provide alternative solutions in the Privileged Access Management (PAM) market. CyberArk's robust financial performance has been highlighted with impressive revenue growth of 30.31% and an industry-leading gross profit margin of 81.07%.
Morgan Stanley (NYSE:MS) reaffirmed its Equalweight rating and $316.00 price target for CyberArk, predicting a potential increase in the company's Annual Recurring Revenue (ARR) growth following the recent security breach. Baird maintained its positive stance on CyberArk, increasing the price target to $370 and retaining an Outperform rating.
CyberArk's Q3 results showed a record total revenue of $240.1 million, a 26% increase year-over-year, and an ARR of $926 million, marking 31.3% growth from the previous year. The company's management anticipates Q4 revenue to range between $297 million and $303 million, surpassing the consensus estimate of $259.7 million.
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