In a report released today, Madeline Brooks from Bank of America Securities maintained a Buy rating on CyberArk Software (CYBR – Research Report), with a price target of $500.00.
Madeline Brooks’s rating is based on CyberArk Software’s promising growth prospects and strategic positioning in the market. The company has set ambitious targets for FY28, including an increased total addressable market (TAM) of $80 billion, up from $60 billion in FY24, driven by the addition of Zilla and the rise of machine and modern workloads. CyberArk’s focus on identity as a foundational platform positions it well for future success, and its strong track record of execution supports confidence in achieving these targets.
Moreover, the company’s guidance for the Rule of 45, with expected revenue growth of 18.8% and a free cash flow margin of 27.3%, is seen as conservative, suggesting potential for upside. CyberArk’s annual recurring revenue (ARR) guidance exceeds market expectations, with a significant portion coming from subscription services. The potential for growth in new customer acquisitions, bolstered by strategic acquisitions like Venafi and Zilla, further underpins the Buy rating, as these moves are expected to enhance CyberArk’s capabilities in machine identity and identity governance.