CyberArk Software Well Positioned For Double-Digit Profitability this Coming Year

By Sam Boughedda

Cowen started shares of CyberArk Software (NASDAQ:) with an Outperform rating and $195 price target on Thursday.

They explained that Cowen believes the company is well positioned to sustain over 20% rev growth and double-digit profitability in the coming year, driven by a comprehensive identity security platform focused on intelligent privilege controls, growth driven by displacements and greenfield opportunities, and a shift to a subscription model.

“CYBR’s end-to-end identity platform centers on intelligent privilege controls in all forms of infrastructure. CYBR is a constant Gartner magic quadrant leader in a TAM estimated at over $20B, representing CAGR of ~10% by FY24,” wrote the analysts.

They were also positive about CyberArk’s management team, stating its Founder, Chairman, and CEO Udi Mokady is “one of the most credible leaders and operators in the industry.” The same goes for CFO Josh Siegel, they added.

“For FY22, we estimate revenue of $595M, up 18.2% y/y. CYBR’s profitability is masked by the transitioning model as we estimate negative op. margin of 4.2%. For FY23, we estimate revenue of $731M (up 23% y/y) and op. margin of 1.1%. We view CYBR as reaching its $1B of ARR by June 2025, constantly outpacing its current market growth rate which is ~10%,” wrote the analysts.