Blue Skies Ahead for CyberArk

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The world of data security for enterprises and individuals keeps growing. Just ask CyberArk Software Ltd. (NASDAQ: CYBR) about its ambitions ahead. Shares of the Israel-based security provider have surged after a strong earnings report. What is driving the strength for this company is that CyberArk offers a new layer of IT security for organizations from cyberattackers who have already evaded the network perimeter.

CyberArk Software shares even hit an all-time high on Wednesday after the firm had reported earnings the night before. The cybersecurity firm posted $0.36 in EPS and $77.7 million in revenue. Consensus estimates were calling for $0.24 in EPS and $72.9 million in revenue.

Looking ahead to the third quarter, CyberArk expects to see EPS in the range of $0.25 to $0.28 and revenues between $77.75 million and $79.25 million. The consensus estimates are $0.30 in EPS and $78.33 million in revenue.

24/7 Wall St. has tracked multiple analyst calls on CyberArk, and it is without surprise that the trend is quite positive and with a bright future.

JPMorgan raised its rating on CyberArk to Overweight from Neutral and raised its target price to $85 from $60.

Barclays raised its target price to $69 from $66, Cowen raised its target to $70 from $64 and Morgan Stanley raised its target to $71 from $65.

Oppenheimer has an Outperform rating and raised its target price to $75 from $65.

Merrill Lynch has a Buy rating and a $73 price objective. The firm talked up solid results and healthy growth across the board, and it sees more opportunities from GDPR, new products and simplified pricing all supporting growth for shareholders. Merrill Lynch’s investment rationale said:

We have a positive view for CyberArk as we see revenue growth reacceleration and resilient market tailwinds. Strong margins and relatively high growth also make the valuation attractive, even when considering the execution risks and perpetual licensing model.

CyberArk’s stock was last seen trading up more than 13% at $70.06 midday Wednesday morning. It had also almost tripled its average daily trading volume of around 380,000 shares. CyberArk has a 52-week trading range of $39.34 to $71.25, and it previously had a consensus analyst price target of $67.88.