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On Thursday, Rosenblatt Securities analyst Catherine Trebnick updated the investment firm’s outlook on CyberArk Software (NASDAQ:CYBR), increasing the price target to $415 from the previous $345. The firm sustained its Buy rating on the company’s shares. In anticipation of the upcoming earnings report, the analyst highlighted positive indicators from partner discussions and a robust product pipeline. CyberArk, a leader in the Privileged Access Management (PAM) industry, is expected to present its fourth-quarter results for 2024 on February 13th before market open. The company’s stock has shown remarkable strength, delivering a 55% return over the past year and currently trading near its 52-week high of $376.61. According to InvestingPro data, analysts maintain a Strong Buy consensus with price targets ranging from $303 to $450.
The raised price target reflects confidence in CyberArk’s continued dominance in the PAM space. This optimism is based on conversations with five partners, four of whom underscored the company’s ongoing leadership in the sector. The feedback suggests potential for an upside in the company’s performance. Yet, the analyst expects CyberArk’s new CFO, Erica Smith, to provide a conservative financial outlook for fiscal year 2025, mirroring the cautious approach of her predecessor. InvestingPro analysis indicates the company is currently trading above its Fair Value, though it maintains impressive gross profit margins of 81% and strong revenue growth of 30% over the last twelve months.
Despite the positive outlook, Rosenblatt has made some adjustments to their estimates. The firm has reduced the total Annual Recurring Revenue (ARR) by 2% year-over-year and revenue by 1% year-over-year. These adjustments take into account the conservative guidance anticipated from the new CFO and the ongoing transition to Vernafi SaaS, a strategic move by CyberArk to enhance its software-as-a-service offerings.
The analyst reiterated the Buy rating, signaling continued confidence in CyberArk’s market position and future performance. With the new price target of $415, Rosenblatt’s valuation suggests a significant potential for growth in CyberArk’s stock value. Investors and market watchers now await the Q4 2024 financial results to gauge the company’s performance and trajectory in line with these projections.
In other recent news, CyberArk Software has seen several positive developments. Truist Securities, JMP Securities, Cantor Fitzgerald, RBC Capital Markets, and KeyBanc Capital Markets have all raised their price targets for the company, maintaining positive outlooks. Truist’s analyst Junaid Siddiqui, in anticipation of the earnings call, forecasts CyberArk’s revenue to reach $1.3 billion, with an operating margin of 16.5% and an Annual Recurring Revenue (ARR) of $1.381 billion.
Cantor Fitzgerald increased its estimates for CyberArk’s performance based on robust demand and positive feedback from the fourth quarter. The revised estimates for the fourth quarter 2024 estimated revenue is now $305.2 million, surpassing the company’s guidance range. RBC Capital noted the positive market checks and the potential for CyberArk’s recent acquisition of Venafi to enhance margins and accelerate annual recurring revenue (ARR) growth over time.
KeyBanc Capital Markets raised its price target on CyberArk, reflecting a positive market sentiment towards CyberArk’s prospects, particularly in the identity security sector. The firm sees potential for significant upside in CyberArk’s acquisition of Venafi. These recent developments highlight the growing confidence in CyberArk’s future performance and market position.
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