Company Reports

We are maintaining our $252 fair value estimate for narrow-moat CyberArk after the firm closed out its second quarter with robust financial results. While macro pressures have continued to affect sales growth across our software coverage, we expect continued strength in CyberArk's sales growth trajectory. As a reminder, CyberArk plays in a crucial identity security market that stands to become a more central part of security spending as companies continue to adopt zero-trust security frameworks. Further, with cyber insurance providers increasingly asking their clients to onboard privileged access management, or PAM, solutions in order to reduce their insurance premiums, we expect demand for CyberArk's core Privileged Access Management, or PAM, solution to remain elevated. After climbing sharply following the earnings report, we view CyberArk's shares as fairly valued.

We are initiating coverage of CyberArk with a fair value estimate of $252 per share and narrow economic moat, Standard Capital Allocation, and Very High Uncertainty ratings. We currently view shares as fairly valued, trading in 3-star territory.

We view CyberArk as a strong cybersecurity player, focusing on the identity slice of the overall security pie. The firm’s solutions, ranging from privileged access management to machine identity, are set up to secure identities across a client organization. With identity security emerging as a core piece of a broader shift to zero-trust security, we believe CyberArk has a long runway of growth ahead of it.