On Tuesday, CyberArk Software (NASDAQ:CYBR) maintained its Market Outperform rating and $480.00 price target from analysts at Citizens JMP. The firm’s analysts support their valuation with the projection that CyberArk’s enterprise value to revenue multiple (EV/revenue) will grow from the current 10.5 times estimate for the year 2026 to 14.9 times, as reflected in the price target. Currently trading at $343.35, InvestingPro data shows the stock is trading above its Fair Value, with analyst targets ranging from $352 to $500. The company has demonstrated strong momentum with an impressive 8.9% return over the past week.
Citizens JMP’s assessment is based on CyberArk’s dominant position in the Privileged Access Management (PAM) market and the potential for further expansion. The company’s efforts to broaden its identity platform are seen as a significant factor contributing to its growth prospects. This expansion strategy appears to be working, as InvestingPro data reveals impressive revenue growth of 33.1% in the last twelve months, with analysts forecasting 31% growth next year. The company maintains robust gross profit margins of 79.2%, supporting Citizens JMP’s confidence in CyberArk’s strategic direction toward a subscription-based model.
The analysts highlighted that the $480.00 price target represents a substantial premium compared to the average multiple of 10.0 times for CyberArk’s peers. This premium is deemed acceptable by Citizens JMP due to CyberArk’s strong market presence and the optimistic view of its future performance. With a market capitalization of nearly $17 billion and strong financial health scores according to InvestingPro, which offers 8 additional key insights about CYBR’s valuation and growth prospects, the company’s strategic moves are expected to solidify its leadership in the market, thus justifying the higher valuation.
CyberArk’s focus on expanding its identity platform is part of a broader trend in the cybersecurity industry, where companies are looking to offer comprehensive solutions that address a range of security concerns. By strengthening its offerings, CyberArk aims to meet the growing demand for advanced security measures in an increasingly digital world.
The affirmation of the Market Outperform rating and price target by Citizens JMP indicates their belief in CyberArk’s potential for continued success. The company’s current EV/revenue multiple and the projected increase are used as benchmarks to underscore the analysts’ confidence in the stock’s future performance. CyberArk’s strategic initiatives, particularly its move towards a subscription model, are expected to drive both growth and profitability, supporting the premium valuation set by Citizens JMP.
In other recent news, CyberArk Software has been the focus of several analyst reports following its IMPACT conference in Boston. DA Davidson adjusted their price target for CyberArk to $415 from $475, maintaining a Buy rating due to positive feedback from the event. UBS also upheld a Buy rating with a $480 price target, noting increased confidence in CyberArk’s potential to consolidate its position in the identity security sector. KeyBanc Capital Markets reaffirmed an Overweight rating and a $485 price target, highlighting CyberArk’s advancements in securing nonhuman identities and AI agents. Stifel echoed this sentiment, maintaining a Buy rating with a $444 price target, citing CyberArk’s commitment to securing a broad range of identities and its potential for growth despite economic uncertainties.
JPMorgan maintained an Overweight rating with a $443 price target, emphasizing CyberArk’s strategy to leverage its customer base and new technologies like Venafi. The conference also showcased CyberArk’s product developments, including the general availability of its Secure Workload Access Solution and the introduction of Secure AI Agents. Analysts across the board have expressed optimism about CyberArk’s strategic initiatives and its ability to address emerging security challenges. These developments indicate a strong position for CyberArk in the cybersecurity market, with analysts maintaining positive ratings and price targets.
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