On Thursday, BTIG initiated coverage on CyberArk Software (NASDAQ:CYBR), a company traded on NASDAQ under the ticker CYBR, with a Buy rating and a $317 price target. The firm's coverage comes with a positive outlook on the company's role in the privilege account management market, citing several factors that are expected to drive growth in the sector.
The privilege account management market is expected to expand due to increased breach headlines, new SEC regulations, cyber insurance, and digital transformation. CyberArk, according to BTIG, holds a strong leadership position in this market and is gaining share. The company has also shown good momentum with its tangential products, such as Endpoint Privilege Manager (EPM) and Secrets Management, which combined make up approximately 20% of its revenue.
CyberArk's access management product, which accounts for around 10% of its revenue, has also seen elevated demand recently. BTIG's statement reflects confidence in the company's growth trajectory, suggesting that the Street's estimates of 27% growth in annual recurring revenue (ARR) for 2024 are well within reach. Moreover, BTIG believes that CyberArk could potentially surpass expectations, delivering growth exceeding 30% year-over-year in an upside scenario.
The firm's positive stance on CyberArk is backed by independent field checks with nine contacts that include customers, partners, and industry analysts. These checks have helped inform BTIG's perspective on the company's market position and growth prospects.
The outlook for CyberArk reflects a broader trend in the cybersecurity industry, where increasing digital threats are prompting businesses to invest more heavily in protective measures and management of privileged accounts.
InvestingPro Insights
With the cybersecurity industry in the spotlight, CyberArk Software (CYBR) is capturing investor attention, underscored by BTIG's optimistic coverage. To add depth to this perspective, InvestingPro provides key metrics and insights. CyberArk's gross profit margin impresses at 79.51% for the last twelve months as of Q4 2023, indicating strong operational efficiency. Despite not being profitable over the last year, analysts are forecasting a turnaround, with net income expected to grow this year. The company's stock performance has been robust, with an 85.38% return over the past year, and a strong 19.65% return in the last three months alone.
InvestingPro Tips highlight CyberArk's impressive gross profit margins and the potential for profitability this year, reflecting the company's solid market position and operational strengths. Additionally, CyberArk operates with a moderate level of debt, which suggests a balanced approach to growth and financial stability. For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips on CyberArk, providing a fuller picture of the company's financial health and market potential.
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