CyberArk Software Will 'Maintain Profitable Growth,' Says Bullish Analyst

CyberArk Software Ltd CYBR appears poised to "consolidate identity spending and maintain durable and increasingly profitable growth," according to RBC Capital Markets analyst Matthew Hedberg.

Last month, the company reported upbeat second-quarter results.

Hedberg initiated coverage of CyberArk Software with an Outperform rating and a price target of $328.

The CyberArk Software Thesis: Identity spending remains important as the company is a security vendor and this market is "largely best in class" and could "consolidate somewhat' over time, Hedberg said in the initiation note.

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"We still think there is considerable room to grow within their core PAM market," he added. Once fully integrated, the Venafi acquisition could accelerate growth back to 20%, offering a significant cross-sell opportunity, he added.

CyberArk Software could continue growing at "+20% organically for several years," given the estimated total addressable market (TAM) of $60 billion, the analyst further stated.

CYBR Price Action: Shares of CyberArk Software had risen by 1.31% to $274.78 at the time of publication on Friday.

Read More: Should You Invest in CyberArk Based on Bullish Wall Street Views?