Truist raises CyberArk stock price target to $385

On Tuesday, Truist Securities analyst Junaid Siddiqui increased the price target on CyberArk Software (NASDAQ:CYBR) shares to $385 from the previous $350, while maintaining a "Buy" rating. Currently trading at $363.74 and near its 52-week high of $366.48, the stock has delivered an impressive 55.11% return over the past year. This adjustment comes ahead of CyberArk’s fourth quarter 2024 earnings report, scheduled to be released on Thursday, February 13, before the market opens.

Siddiqui’s optimism about CyberArk’s position in the cybersecurity market is based on the increasing importance of Privilege Access Management (PAM). The recent cyberattack on the U.S. Treasury Department in December 2024, which involved a breach by Chinese state-sponsored hackers through PAM provider BeyondTrust, has underscored the critical role of identity security. This incident has highlighted identity as the primary vector for breaches and fraud, which is expected to continue driving the demand for PAM solutions. According to InvestingPro data, CyberArk maintains impressive gross profit margins of 81.07% and has shown strong revenue growth of 30.31% over the last twelve months.

CyberArk has been recognized for its ability to adapt and expand its offerings, evolving from a PAM provider to delivering a comprehensive suite of identity security solutions. These include Identity-as-a-Service (IDaaS), Access Management (AM), and Secrets Management, which together create a unified platform for securing and managing various identity types across consumer, workforce, and DevSecOps environments.

The recent acquisition of Venafi, which was finalized on October 1, 2024, further strengthens CyberArk’s security platform. Venafi’s capabilities in protecting machine identities are seen as complementary to CyberArk’s offerings, potentially accelerating the company’s product roadmap in the identity space. Moreover, this acquisition expands CyberArk’s Total (EPA:TTEF) Addressable Market (TAM) by $10 billion, from $50 billion to an impressive $60 billion.

In anticipation of the earnings call, Siddiqui 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. With a market capitalization of $17.84 billion and a strong analyst consensus rating of 1.38 (Buy), the company’s performance and strategic moves are closely watched by investors as indicators of its future growth and positioning in the cybersecurity sector. For deeper insights into CyberArk’s valuation and growth prospects, including 15 additional ProTips and comprehensive financial analysis, visit InvestingPro.

In other recent news, CyberArk Software has experienced several notable developments. JMP Securities raised the price target for CyberArk to $390.00, maintaining its Market Outperform rating, based on the company’s future revenue projections and strong market position. Cantor Fitzgerald also reaffirmed its confidence in CyberArk, maintaining an Overweight rating and a $415.00 price target, due to positive industry feedback and strong fourth-quarter checks.

RBC Capital Markets and KeyBanc Capital Markets both expressed optimism about CyberArk’s prospects. RBC Capital increased the price target to $410.00, citing the potential for CyberArk to surpass fourth-quarter expectations. Similarly, KeyBanc Capital Markets raised its price target to $400, noting optimistic feedback about CyberArk’s market momentum.

Piper Sandler and DA Davidson increased CyberArk’s price target to $380 and $390 respectively, maintaining positive ratings. Piper Sandler’s outlook is based on the anticipation of successful integration of Venafi, while DA Davidson sees potential upside in CyberArk’s fourth-quarter ARR. Lastly, Rosenblatt Securities sees a potential opportunity for CyberArk following a security breach at the US Treasury Department, linked to a compromised digital key from BeyondTrust. These recent developments highlight the growing confidence in CyberArk’s future performance and market position.

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