Why These 3 CyberArk Analysts Cut Price Targets Despite Q1 Beat-And-Raise

Although Cyberark Software Ltd CYBR reported disappointing first-quarter revenue of $127.6 million, its earnings were better than Street expectations and management raised the full-year guidance.

Mizuho Securities On CyberArk Software: Analyst Gregg Moskowitz reiterated a Buy rating for the company while lowering the price target from $205 to $180.

“CYBR reported strong ARR growth of 48% Y/Y that accelerated for a third consecutive quarter and significantly exceeded the Street's 43% forecast,” Moskowitz wrote in a note. “Moreover, the co. surpassed its SaaS and subs bookings target mix of ~85% in just 5 quarters,” he added.

The Mizuho Securities analyst further mentioned that CyberArk Software is among the main beneficiaries of “a heightened threat landscape that has amplified the need for privileged access management” and that the company’s transition to a recurring revenue model could “yield superior financials and visibility over time.”

Moskowitz cut the price target to reflect “the material recent contraction in comp multiples.”

KeyBanc Capital Markets On CyberArk Software: Analyst Eric Heath maintained an Overweight rating while reducing the price target from $217 to $160.

“Strength was driven by a heightened demand environment for Identity & PAM, further elevated by the ongoing geopolitical concerns,” Health said in a note to clients.

“We continue to view PAM as a priority for security spend in 2022 in response to breaches with CYBR executing well against the Subscription transition, an expanding market opportunity and as a potential LT consolidator,” he added.

Heath said he cut the price target to reflect “lower peer multiples.”

Wells Fargo On CyberArk Software: Analyst Andrew Nowinski reiterated an Equal Weight rating while cutting the price target from $170 to $125.

CyberArk Software completed the SaaS transition, which accounted for 86% of the new bookings mix, Nowinski wrote in a note.

“While this created an $8MM revenue headwind and caused revenue to come in slightly below the midpoint of guidance, the early completion of the transition is clearly a positive,” he added.

Although the company reported strong ARR growth for the first quarter, it is “hard to see multiple expansion,” the Wells Fargo analyst stated.

CYBR Price Action: Shares of CyberArk Software had risen by 11.09% to $133.86 Friday afternoon, according to Benzinga Pro.