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On Thursday, Stifel analysts increased their price target on CyberArk Software (ETR:SOWGn) shares, traded on (NASDAQ:CYBR), to $444 from the previous $370, while reiterating a Buy rating. The adjustment follows CyberArk’s impressive fourth-quarter results, which surpassed expectations in key financial metrics. The company, now valued at $20.42 billion, has seen its stock trade near its 52-week high of $394.31. According to InvestingPro data, analysts maintain a Strong Buy consensus with an average rating of 1.41 (where 1 is Strong Buy and 5 is Strong Sell).
CyberArk’s annual recurring revenue (ARR) saw a robust 51% year-over-year increase, with organic growth contributing 30%. The company’s revenue also enjoyed a significant rise, reporting a 41% year-over-year growth, with organic revenue up by 20%. These figures were complemented by better-than-expected profitability and cash flow from operations/free cash flow (CFFO/FCF). InvestingPro analysis reveals impressive gross profit margins of 81.07% and trailing twelve-month revenue of $909.46 million, with a strong 30.31% year-over-year growth rate.
The company’s fiscal year 2025 guidance also exceeded analysts’ forecasts. CyberArk’s recent performance was bolstered by the strength of its expanding platform, which encompasses both human and non-human identities. This includes the benefits seen from its acquisition of Venafi, which performed beyond expectations in the fourth quarter.
Further expanding its capabilities, CyberArk announced the acquisition of Zilla Security, aiming to delve deeper into Identity Governance and Administration (IGA). This move is part of CyberArk’s strategy to converge various identity-related aspects of cybersecurity.
Stifel’s analysts expressed continued confidence in CyberArk’s potential to secure a wide range of personas, including workforce, IT, developers, and machines. They also noted the company’s promising opportunity to secure AI and chatbot workloads. More details on CyberArk’s medium-term model and other strategic initiatives are anticipated at the upcoming analyst day on February 24.
In conclusion, Stifel regards CyberArk as a top mid-cap stock pick, citing numerous drivers that are expected to sustain over 20% revenue growth and drive operating margin and free cash flow expansion in the upcoming years. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value. Subscribers can access 16 additional ProTips and a comprehensive Pro Research Report, which provides deep insights into CyberArk’s financial health, growth prospects, and market position among 1,400+ top US stocks.
In other recent news, CyberArk Software has been the focus of several analyst reports. Stifel analysts have increased their price target on CyberArk’s shares to $450, following strong fourth-quarter financial results for fiscal year 2024 and robust guidance for the fiscal year 2025. Similarly, JPMorgan analysts raised their price target from $375.00 to $431.00, citing the company’s strong execution and market position. Guggenheim also increased their price target on CyberArk to $417, anticipating that the company will surpass its fourth-quarter subscription and total revenue targets.
In other developments, CyberArk has announced the acquisition of Zilla Security, a top player in modern Identity Governance and Administration (IGA) solutions. The acquisition, valued at $165 million in cash and an additional $10 million earn-out tied to certain milestones, is expected to enhance CyberArk’s Identity Security Platform through the integration of Zilla’s AI-powered IGA capabilities.
These recent developments highlight CyberArk’s ongoing efforts to grow its business and assert its position in the cybersecurity market. The company’s strong performance and strategic acquisitions demonstrate its commitment to enhancing its offerings and delivering robust financial results. Analysts from various firms, including Stifel, JPMorgan, and Guggenheim, have expressed confidence in CyberArk’s growth trajectory and market position.
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