Every single day brings another security breach, and the top cybersecurity stocks jump again. Recently the Houston Astros baseball team was hacked, and the St. Louis Cardinals are the alleged perpetrators. The bottom line? This is not going away anytime soon, if ever.
In a new research report, Merrill Lynch does what probably should be expected. Because of the jump in stock prices for these top stocks to buy, the firm raises the price targets. The firm’s analysts say flat out that they continue to believe that stock investors should focus on security as a top theme for 2015, given the robust spending environment and the current data trends that are clearly showing sector momentum.
This company had a red-hot IPO last year and shares have had a breathtaking climb. Cyber-Ark Software Ltd. (NASDAQ: CYBR) claims it is the only security company focused on eliminating the most advanced cyberthreats, those that use insider privileges to attack the heart of the enterprise. The company proactively secures against cyberthreats before attacks can escalate and do irreparable damage. Some 35% of the Fortune 100 and 17 of the world’s top 20 banks use the software to protect high-value information assets, infrastructure and applications.
The Merrill Lynch team highlights the company’s unique and innovative technology that has a very large and rapidly growing market opportunity, which they estimate to be somewhere near $2.1 billion. They also see the company growing revenues at an astonishing 25% for the next several years, and the potential for 25% to 30% operating margins.
Merrill Lynch raised the price target on the stock from $70 to $80. The consensus price target at Thomson/First Call is $59.80. Cyber-Ark vaulted through that Wednesday, closing at $73.89.