CyberArk Software's (CYBR) SaaS Bookings Drive Sustainable Upside - Morgan Stanley

Morgan Stanley analyst Hamza Fodderwala reiterated an Overweight rating and $235.00 price target on CyberArk Software (NASDAQ: CYBR) after the company reported better-than-expected SaaS subscription bookings despite a $33mn headwind from the SaaS migration. Revenues of $151mn beat topped the $145mn expectation as subscription revenues grew 142% YoY to 31% of total, up from 14% in 4Q20.

The analyst stated "We highlight that another focal point of the quarter was the subscription bookings mix reaching 71%, above expectations for 68%, as the transition to a recurring model is well-ahead of schedule, now expecting to hit the 85% mark in 2Q22 instead of 3Q, as previously estimated. The company also provided mixed FY22 guidance, which management attributed to increased investments in the global sales team and R&D, with revenues of $590mn vs. Street’s $562mn, OM of -5% vs. -2%, and EPS of -81c vs. -13c. With robust secular demand for Zero Trust and Cloud platforms driving the growth of SaaS-based identity security solutions, we reiterate our Buy and $285 PO, based on 14x CY23 EV/Sales vs. prior 16x CY22 as we roll our model forward."

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 $155.58 yesterday.

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