Nomura Securities Downgrades CyberArk Software (CYBR) to Neutral on Valuation

Nomura Securities downgraded CyberArk Software (NASDAQ: CYBR) from Buy to Neutral while maintaining their $36 price target citing valuation.

Analyst Rick Sherlund comments, "CyberArk shares have moved up 55% from our initiation of research coverage on October 20th at $30.29 (and 194% over the past 2 months since the IPO pricing of $16 on September 23rd and Nasdaq up 10% since initiation). The shares have an enterprise value of $1.47bn and trade at 13.0x Street calendar 2015 revenue esti
mates of $113mn. The company is profitable and cash flow positive, but accelerated investments have reduced earnings and cash flow to a level that is not relevant in our view to valuation."

He added, "Relative to the growth of other leading security vendors, including FireEye and Palo Alto, CyberArk sells at a premium valuation."

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 $47.01 yesterday.

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