JPMorgan raised CyberArk Software (NASDAQ:CYBR) to Overweight from Neutral, increasing the price target to $200 from $182 in a note Tuesday. The firm also opened a Positive Catalyst Watch on the stock.
Analysts noted the accelerating demand for the IT security company's products, adding that it is "one of the best-positioned Security Software vendors."
"We see opportunity for upside in the wake of accelerating demand as CyberArk has some of the most favorable exposure to high priority Security spending within our coverage," wrote the analysts.
"In addition to threat activity aided by events over the past few years, including the pandemic and war in Ukraine, we've seen recent economic volatility, acceleration of AI-generated threats, and recent geopolitical disruption among factors that have contributed to the growth and severity of the threat environment," they added.
The analysts also noted other recent high-profile attacks that support an increase in awareness and urgency for protection against these threats.
They acknowledged that CyberArk has underperformed the firm's coverage universe so far this year. However, JPMorgan believes the "concern is overdone" and sees an attractive setup "with reasonable expectations, a favorable competitive environment, share consolidation onto its platform, healthy government traction, and an improving fundamental profile."