RBC Capital maintains CyberArk Outperform rating, $420 target

Published 14/05/2025, 14:52
© CyberArk PR

On Wednesday, RBC Capital Markets maintained its positive stance on CyberArk Software (NASDAQ:CYBR), reiterating an Outperform rating with a price target set at $420.00. The firm’s analyst highlighted CyberArk’s strong performance and the potential for increased estimates in the coming years due to conservative guidance assumptions. According to InvestingPro data, analyst targets range from $352 to $500, with the company currently valued at $17.8 billion.

CyberArk, known for its cybersecurity solutions, has demonstrated robust year-over-year growth in organic subscription Net New Annual Recurring Revenue (NNAAR). The company’s impressive 35% revenue growth and strong 78% gross profit margin, as reported by InvestingPro, support this momentum. The analyst noted that this growth is a key indicator of the company’s solid position in the market. Additionally, the integration of acquisitions Venafi and Zilla is progressing well, with management expressing confidence in the health of their end markets and the drivers for continued growth through the 2025 fiscal year.

The analyst also mentioned that the outlook for the second quarter and the second half of 2025 is looking promising, especially as CyberArk’s strategy to cross-sell Venafi products continues to mature. This strategy is part of CyberArk’s broader goal to consolidate spending on identity security solutions within organizations. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value, though 12 analysts have recently revised their earnings estimates upward.

CyberArk is set to participate in RBC Capital Markets’ Boston Bus Tour on May 28, 2025, an event that will provide investors with further insights into the company’s strategies and performance. This engagement is part of CyberArk’s ongoing efforts to communicate with stakeholders and share its vision for the future of identity security. For deeper insights into CyberArk’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes 13 additional ProTips and detailed analysis.

In other recent news, CyberArk Software has reported strong financial results for the first quarter, surpassing expectations in several key areas. The company achieved a 43% year-over-year increase in quarterly revenue, reaching $317.6 million, and a 50% growth in Annual Recurring Revenue (ARR), totaling $1,215 million. Non-GAAP earnings per share also exceeded projections, coming in at $0.98 compared to the anticipated $0.79. Despite these impressive results, CyberArk maintained a cautious outlook for fiscal year 2025, slightly raising its guidance by $5 million. Analysts from Cantor Fitzgerald, KeyBanc, and BofA Securities have reiterated their positive ratings, maintaining price targets ranging from $420 to $500, citing CyberArk’s strong execution and robust product portfolio. Meanwhile, BTIG adjusted its price target to $425 from $485, while retaining a Buy rating, acknowledging the company’s solid performance and conservative guidance strategy. JMP analysts continue to support CyberArk with a Market Outperform rating and a $480 price target, highlighting the company’s strategic customer acquisition and growth in non-human identity solutions. These developments reflect a broad consensus of confidence among analysts in CyberArk’s market position and future growth prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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