CyberArk Stock Poised To Surge Nearly 22%, Says BofA: 'Metrics Show Continued Execution On All Fronts'

Bank of America Securities analyst, Madeline Brooks, has increased the price target for CyberArk Software CYBR by $145 to $500, indicating a potential surge in the company’s shares.

What Happened: Brooks maintained a Buy rating on CyberArk’s stock, attributing the decision to the evolving security market’s transition from a fragmented product collection to a core cybersecurity component, according to a CNBC report on Tuesday. The increase in price target indicates an upside potential of nearly 22% from Tuesday’s close. CyberArk’s comprehensive solutions for both human and machine identities position it well to capitalize on market opportunities.

"The Identity Security market is evolving from a collection of fragmented point products to a foundational pillar in cybersecurity," wrote Brook in a research note to clients. The analyst described machine identity within identity security as reaching a “critical turning point” in the market.

The integration of Venafi not only drove CyberArk’s revenue growth but also enhanced its margins, strengthening the company’s overall financial position. According to Brooks, the company should be capable of expanding its Venafi business by at least 20% this year.

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Why It Matters: On Feb. 13, CyberArk reported that its fourth-quarter revenue surged by 41% year-on-year to $314.40 million, surpassing analyst consensus estimates. The company’s adjusted EPS of $0.80 also beat the consensus estimate of $0.72.

Following the upbeat earnings, several analysts revised their forecasts for CyberArk. Barclays analyst Saket Kalia maintained an Overweight rating on the stock and raised the price target from $375 to $450, while Morgan Stanley analyst Hamza Fodderwala maintained an Equal-Weight rating on CyberArk and boosted the price target from $316 to $390.

Besides BoFa, today, Citi maintained a Buy rating on the stock with a price target of $410

CEO Matt Cohen highlighted 2024 as a milestone year for the company, with total ARR reaching $1.169 billion, driven by organic ARR crossing $1 billion and the outperformance from Venafi.

Resonating the same, Brooks said CyberArk's metrics show "continued execution on all fronts” and described the company's core business as "strong."

With its robust revenue growth, strong free cash flow margin, and leading identity security platform, CyberArk is well-positioned to seize its massive market opportunity and deliver durable growth.

The U.S.-listed shares of the Israeli company surged more than 63% over the past year, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.