UBS raises CyberArk Software price target to $440 from $400

On Tuesday, UBS analyst Roger Boyd increased the price target for CyberArk Software (NASDAQ:CYBR) to $440, up from the previous $400, while reiterating a Buy rating on the company’s shares. Boyd highlighted CyberArk as a top pick heading into 2025, despite acknowledging a mixed outlook for the first quarter earnings. The stock currently trades at $373.61, with impressive growth metrics showing a 50.58% return over the past six months and maintaining strong gross profit margins of 81.07%. According to InvestingPro analysis, the company’s financial health score is rated as "Good." The adjustment comes after CyberArk’s stock rose approximately 22% since its third-quarter earnings report, outpacing the 2% gain of the IGV, an ETF tracking the software industry.

Boyd’s optimism is supported by positive feedback from partner checks for CyberArk’s fourth quarter, the full year 2025, and the company’s integration with Venafi, a cybersecurity firm acquired by CyberArk. These factors contribute to the analyst’s confidence in CyberArk’s fourth-quarter performance and its initial guidance for the calendar year 2025.

The company is expected to guide its CY25 Net New Annual Recurring Revenue (NNARR) to remain roughly flat, aligning with previous forecasts. This outlook is seen as conservative, particularly in light of the potential to surpass consensus expectations, which predict $68 million in organic NNARR for the fourth quarter, maintaining a year-over-year status quo.

Additionally, CyberArk’s guidance anticipates an $8-10 million decrease in Maintenance Annual Recurring Revenue (ARR), which Boyd considers conservative given the robust renewal rates observed within the company’s Maintenance install base. This conservative guidance suggests that CyberArk is managing expectations prudently while leaving room for potential upside in its financial performance.

In other recent news, CyberArk has been in the spotlight for several noteworthy developments. The company announced a strategic integration with SentinelOne (NYSE:S)’s SentinelOne Singularity, an AI-powered cybersecurity platform. The collaboration aims to bolster endpoint threat detection and response by merging SentinelOne’s Singularity Endpoint solution with CyberArk’s Endpoint Privilege Manager. This integration is part of CyberArk’s broader strategy to provide continuous threat prevention, detection, and response across the identity lifecycle.

Several investment firms have also updated their outlook on CyberArk. Rosenblatt Securities increased the price target to $415 from the previous $345, maintaining a Buy rating. Truist Securities raised the price target on CyberArk shares to $385 from the previous $350, while maintaining a "Buy" rating. JMP Securities increased the price target for CyberArk to $390.00, up from the previous target of $360.00, reiterating its Market Outperform rating. Cantor Fitzgerald reaffirmed its confidence in CyberArk, maintaining an Overweight rating and a $415.00 price target.

These recent developments reflect the market’s confidence in CyberArk’s strategic moves and potential for continuous growth. The company’s performance and strategic moves are closely watched by investors as indicators of its future growth and positioning in the cybersecurity sector.

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