Summit Research Cuts Price Target on CyberArk Software (CYBR) Following Mixed Guidance

Summit Research reiterated a Hold rating on CyberArk Software (NASDAQ: CYBR), and cut the price target to $30.00 (from $47.00), following the company's 4Q earnings report. CyberArk reported solid results with 4Q revenue and EPS coming in above the guidance range and consensus. For 1Q16 (Dec), management provided a guidance range that at the midpoint provides incrementally beat on the topline with $43M (vs consensus $41.7M), but misses with non-GAAP EPS guided at $0.16 (vs consensus $0.18).

Analyst Srini Nandury commented, "Yet again, CyberArk reported solid results with 4Q15 (Dec) revenue and EPS coming in above the guidance range and consensus. We expect CyberArk to continue to beat estimates in the near term but we do see competition emerging from companies such as Centrify and Okta, which deliver privileged account security through cloud while building a robust solution. We believe a solution such as Centrify is more integrated and extensive and will prove to be a formidable competitor. Given that privileged accounts have become a major target for hackers, we expect increased spending directed towards securing privileged accounts and this should continue to benefit CYBR immensely. CYBR is currently trading at 5.6x on C2016 sales basis and is one the more expensive stock in our coverage universe. With the recent drop, we are warming up to this stock as the risk/reward has become more appealing but still remain cautious due to the high expectations of high flyers. Given this we remain HOLD rated and adjust our PT to $30 from $47 due to across the board multiple compression."

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 $36.74 yesterday.

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