Stifel maintains CyberArk stock buy rating, $444 target post-analyst day

On Tuesday, Stifel analysts maintained a positive stance on CyberArk Software (NASDAQ:CYBR), reiterating a Buy rating and a price target of $444.00. The company, currently valued at $17.85 billion, has demonstrated strong momentum with a 46.43% return over the past year. According to InvestingPro data, the stock is currently trading above its Fair Value, reflecting robust investor confidence in its growth prospects. The endorsement follows CyberArk’s analyst day held on Monday, where the company showcased its expanding platform designed to secure a wide range of identities, including workforce, IT professionals, developers, devices, workloads, and AI. The company’s strategy is aimed at addressing an $80 billion Total (EPA:TTEF) Addressable Market (TAM).

During the event, CyberArk set forward its financial targets for fiscal year 2028, which include a 17.6% compound annual growth rate (CAGR) for Annual Recurring Revenue (ARR) and an 18.8% revenue CAGR. These projections align with Stifel’s growth expectations of 17%-20%, although they fall slightly short of higher estimates anticipated by some investors. The company’s current performance supports these ambitious targets, with InvestingPro data showing impressive 33.1% revenue growth and strong gross margins of 79.18%. Additionally, CyberArk anticipates a 27% Free Cash Flow (FCF) Margin, surpassing the expectations of the buy-side.

Stifel’s analysis suggests that while CyberArk continues to find opportunities in its core Privileged Access Management (PAM) identity market, there are also emerging growth areas to watch. These include Machine Identity, Identity Governance and Administration (IGA), and Agentic AI. According to Stifel, these sectors represent significant growth prospects for CyberArk in the coming years.

In summary, Stifel’s commentary underscores a growing confidence in the increasing importance of identity security and CyberArk’s potential to secure a broader array of human and non-human identities. CyberArk’s solidified position in cybersecurity and its strategic goals for the future contribute to its status as a top pick in the sector according to Stifel. With a strong analyst consensus rating of 1.38 (Strong Buy) and 16 analysts recently revising earnings estimates upward, investors seeking deeper insights can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.

In other recent news, CyberArk Software has been the focus of several analyst firms following its Investor Day event. RBC Capital Markets reaffirmed its Outperform rating with a price target of $481, highlighting CyberArk’s strategic focus on machine identity and agentless AI technologies. The firm is optimistic about CyberArk’s goal to reach $2.3 billion in Annual Recurring Revenue (ARR) by 2028. DA Davidson also maintained a Buy rating and a $475 price target, noting the company’s solid ARR growth among prominent clients and opportunities in Identity Security.

BTIG expressed a bullish outlook, keeping a $485 price target and emphasizing CyberArk’s potential in the Privileged Access Management (PAM) market and its recent acquisition of Zilla. Jefferies echoed this sentiment with a Buy rating and a $475 target, focusing on the company’s growth potential in machine identity and agentic AI. Citi maintained a Buy rating with a $410 target, highlighting CyberArk’s strong financial results and strategic initiatives, such as the expansion of the Venafi pipeline and the contribution of new intellectual property from Zilla.

The analysts’ evaluations underscore CyberArk’s robust growth prospects and strategic positioning in the cybersecurity market. These developments indicate a consistent confidence among analysts in CyberArk’s ability to achieve its long-term financial and operational goals.

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