(Updated - August 14, 2015 11:31 AM EDT)

CyberArk Software (NASDAQ: CYBR) opened higher Friday after it was upgraded from Market Perform to Outperform at Wells Fargo. Earlier this week, CyberArk Software reported Q2 results that topped expectations, leading analyst Gray Powell to increase his price target on the stock to $70-$73 ($65-$67 prior).

Powell pointed out the company's best in class billings growth and said he was increasingly confident in CyberArk Software's outlook. He also noted recent headlines about data breaches support demand for the security company's products.

"After a very strong Q2 report, we took a couple of days to take a deeper look at broader trends and had a second follow up call with CFO – Josh Siegel. We found that CYBR’s billings growth and sales & marketing efficiencies are exceeding peers by a wide margin," said the analyst.

Powell added, "With recent breach headlines, we think enterprises are increasingly looking to expand privileged account management solutions. This is helping CYBR drive more customer wins, expand further with existing customers, and upsell more products per customer. We also see potential for improved federal / government activity to be a source of incremental demand and feel very confident in 2H’15 estimates. Lastly, we think valuation has become more compelling and that CYBR’s FCF profile is underappreciated."

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 $58.06 yesterday.