Stifel raises CyberArk stock price target to $444

On Friday, Stifel analysts increased their price target on CyberArk Software (NASDAQ:CYBR) shares, lifting it from $370.00 to $444.00 while maintaining a Buy rating on the company's stock. The adjustment comes in response to CyberArk's impressive fourth-quarter results, which surpassed expectations in multiple key areas. According to InvestingPro data, the stock is currently trading near its 52-week high of $418.49, with analyst targets ranging from $303 to $500. Based on InvestingPro's Fair Value analysis, the stock appears to be trading at premium levels.

CyberArk reported a substantial year-over-year increase in Annual Recurring Revenue (ARR) for the fourth quarter of 2024, with a 51% reported growth and a 30% organic growth. The company's revenue also saw a significant rise, with a 41% increase reported and a 20% organic growth compared to the same period last year. InvestingPro data reveals impressive gross profit margins of 79.18% and overall revenue growth of 33.1% in the last twelve months. The company's strong financial health is reflected in its GOOD Financial Health Score, with particularly high marks in price momentum. In addition to revenue and ARR, CyberArk's profitability and cash flow from operations/free cash flow (CFFO/FCF) also exceeded analysts' forecasts.

The company's guidance for the fiscal year 2025 was also higher than anticipated, indicating continued financial strength. Analysts pointed to CyberArk's expanding platform, which now covers a wider range of human and non-human identities, as a key factor in its success. This expansion has been bolstered by the recent acquisition of Venafi, which performed better than expected in the fourth quarter, and the purchase of Zilla Security, which positions CyberArk deeper into Identity Governance and Administration (IGA).

Stifel's analysts expressed confidence in CyberArk's potential to secure a diverse set of personas including workforce, IT, developers, and machines. They also noted the company's interesting opportunity to secure AI and chatbot workloads. More details on CyberArk's strategy and medium-term business model are anticipated at the upcoming CyberArk analyst day on February 24.

Concluding their assessment, the Stifel analysts reaffirmed CyberArk as a top mid-cap stock pick, citing multiple drivers that are expected to sustain over 20% revenue growth and contribute to operating margin and free cash flow expansion in the coming years. For deeper insights into CyberArk's financial health and growth prospects, InvestingPro subscribers can access comprehensive Pro Research Reports, which include detailed analysis of the company's performance metrics, valuation, and growth potential among 1,400+ top US stocks.

In other recent news, CyberArk Software has been making significant strides in the cybersecurity industry. Analysts from Baird have raised the stock price target to $455, in response to impressive fourth-quarter performance, including a 30% organic Annual Recurring Revenue (ARR) growth. KeyBanc Capital Markets also increased its price target for CyberArk to $485, following robust fourth-quarter results and a guidance for 2025 that exceeded market consensus.

The company's recent acquisitions, Venafi and Zilla, have been beneficial in advancing CyberArk's machine identity security offerings and introducing modern Identity Governance Administration (IGA) capabilities. William Blair maintains an Outperform rating on the company, highlighting its comprehensive platform and increased value proposition.

Jefferies has lifted the CyberArk stock target to $475, following its impressive fourth-quarter performance, with a 30% year-over-year organic ARR growth. JMP Securities has also raised its price target to $480, following the company's strong financial performance in the fourth quarter. These recent developments underscore CyberArk's strengthening position in the cybersecurity industry.

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