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On Thursday, Piper Sandler, a financial services firm, increased its price target for CyberArk Software (NASDAQ:CYBR) stock, setting the new goal at $440, up from the previous target of $380, while maintaining an Overweight rating on the shares. The stock, which has delivered an impressive 59% return over the past year according to InvestingPro data, is currently trading near its 52-week high of $382.19.
The adjustment comes as Piper Sandler expresses confidence in CyberArk’s potential to accelerate the growth of Venafi, a recently acquired entity, in the calendar year 2025 and beyond. With a market capitalization of $18.75 billion and an "GOOD" Financial Health score from InvestingPro, CyberArk appears well-positioned for this expansion. The analyst at Piper Sandler highlighted the proliferation of machine identities within organizations due to IT modernization, noting that a large enterprise could have up to approximately one million machine identities.
The firm expects the continued growth of machine identities, along with evolving policies such as shorter certificate lifespans and the introduction of AI agents, to amplify the challenges organizations face in managing these identities. Piper Sandler believes that Venafi’s solution set is distinguished from its competitors, which positions CyberArk to leverage its go-to-market organization to reinvigorate growth in this asset. The company’s strong position is reflected in its impressive 81% gross profit margin and 30% revenue growth over the last twelve months.Want deeper insights? InvestingPro subscribers have access to over 15 additional premium insights and a comprehensive Pro Research Report for CyberArk, along with detailed financial metrics and expert analysis.
The analyst provided a detailed model to support the forecast for growth reacceleration, which underpins the decision to raise the price target. The report suggests that CyberArk’s strategic positioning and product capabilities are poised to capitalize on the expanding market for machine identity protection.
CyberArk, which specializes in cybersecurity solutions, including privileged access management, is expected to benefit from the integration and growth of Venafi’s offerings. The raised price target reflects the firm’s optimism about CyberArk’s future performance and market position.
In other recent news, CyberArk Software has seen a series of price target increases from multiple investment firms. UBS raised its price target to $440, citing positive feedback from partner checks and the company’s integration with Venafi, a cybersecurity firm acquired by CyberArk. Similarly, Rosenblatt Securities increased its price target to $415, highlighting a robust product pipeline and positive indicators from partner discussions. Truist Securities also raised its price target to $385, emphasizing CyberArk’s expansion of its identity security solutions and its acquisition of Venafi. Finally, JMP Securities increased its price target to $390, citing the company’s dominance in the Privileged Access Management (PAM) market and its balanced approach to growth and profitability.
In other developments, CyberArk has announced a strategic integration with SentinelOne (NYSE:S)’s Singularity, an AI-powered cybersecurity platform. This collaboration aims to enhance endpoint threat detection and response by merging SentinelOne’s Singularity Endpoint solution with CyberArk’s Endpoint Privilege Manager. The integration plans to offer advanced tools for threat identification and response by combining AI-driven security analytics.
These are recent developments, and investors are likely to keep a close eye on CyberArk’s upcoming earnings report. The company is expected to guide its Net New Annual Recurring Revenue (NNARR) to remain roughly flat, aligning with previous forecasts. CyberArk’s guidance also anticipates a decrease in Maintenance Annual Recurring Revenue (ARR), seen as conservative given the robust renewal rates observed within the company’s Maintenance install base.
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