Summit Research Starts CyberArk Software (CYBR) at Sell

Summit Research initiates coverage on CyberArk Software (NASDAQ: CYBR) with a Sell rating and a price target of $30.00.

Analysts Srini Nandury said, "While we believe CyberArk has an early lead and first mover advantage in securing privileged accounts (root or system or application administrator accounts) and expect the company to grow north of 20% for next few 3-5 years, we initiate with sell due to valuation. CyberArk is trading at 8.5x on EV/C2015 sales basis versus Security software peer group average of 7.0x and high-growth software peer group average of 7.4x. While we understand that the CyberArk consensus revenue estimates are conservative, and that the company will likely beat the estimates, revenue growth needs to be north of 40% to see any noteworthy returns. Further, we would recommend investors to lock-in profits before the additional shares come into market following lock-up expiration in March."

For an analyst ratings summary and ratings history on CyberArk Software click here. For more ratings news on CyberArk Software click here.

Shares of CyberArk Software closed at $38.62 yesterday.

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