Stifel maintains buy on CyberArk with $444 target post-strong quarter

On Tuesday, Stifel analysts maintained their positive stance on CyberArk Software (NASDAQ:CYBR), reiterating a Buy rating and a price target of $444.00. The cybersecurity firm, now valued at $17.8 billion, reported a robust first quarter for fiscal year 2025, with annual recurring revenue (ARR) increasing by 50% year-over-year and revenue up by 43% from the same period last year. The company’s profitability, cash flow from operations (CFFO), and free cash flow (FCF) also exceeded expectations. According to InvestingPro data, CyberArk has maintained strong momentum with a 33.1% revenue growth over the last twelve months.

CyberArk’s strength was attributed to its expanding platform which covers a wide range of identities, both human and non-human. This includes the benefits from its recent acquisition of Venafi. The company’s operational excellence is reflected in its impressive 79.2% gross profit margin, and InvestingPro analysis indicates an overall "GOOD" financial health rating. Despite the positive results, CyberArk’s management decided to maintain its ARR and Adjusted FCF guidance for fiscal year 2025, opting for a conservative approach amidst an uncertain macroeconomic environment.

Stifel’s analysts expressed confidence in CyberArk’s potential to secure a diverse array of personas, encompassing human users, machines, and artificial intelligence identities. They highlighted secular tailwinds that could benefit the company, particularly the movement to reduce certificate lifecycles in the cybersecurity industry—a field where Venafi, a CyberArk acquisition, is poised to make significant contributions.

The firm’s analysts concluded that CyberArk remains one of their top cybersecurity picks, with several factors likely to drive sustained high-teen growth rates. They also foresee potential for expansion in operating margins and FCF in the upcoming years. This optimism is reflected in the strong analyst consensus, with targets ranging from $352 to $500. CyberArk’s consistent performance and strategic positioning suggest a promising outlook, according to Stifel’s analysis. For deeper insights into CyberArk’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes 12 additional exclusive ProTips and detailed financial analysis.

In other recent news, CyberArk Software has reported impressive first-quarter results for 2025, surpassing expectations in several key financial metrics. The company’s Annual Recurring Revenue (ARR) reached $1.215 billion, marking a 50% year-over-year increase, which exceeded the consensus estimate of $1.202 billion. Revenue for the quarter was $317.6 million, a 43% increase from the previous year, outperforming both the consensus estimate and the company’s own guidance. Despite these strong results, CyberArk has chosen to maintain a cautious outlook for the full year, reiterating its ARR guidance between $1.41 billion and $1.42 billion, representing a 21% growth year-over-year.

Analysts have responded positively to CyberArk’s performance, with Truist Securities maintaining a Buy rating and a $425 price target, while Mizuho (NYSE:MFG) reiterated an Outperform rating with a $450 target. Citizens JMP also reaffirmed a Market Outperform rating with a $480 price target, highlighting the innovative use of AI in CyberArk’s offerings. Cantor Fitzgerald maintained an Overweight rating with a $400 target, emphasizing CyberArk’s potential for new customer acquisition and cross-selling opportunities. These developments underscore the confidence analysts have in CyberArk’s strategic positioning and growth prospects in the identity security market.

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