CyberArk Software Ltd (CYBR) is positioned for continued growth and profitability, according to RBC Capital Markets analyst Matthew Hedberg. Hedberg, who recently initiated coverage of CyberArk, has assigned an Outperform rating and a $328 price target. His bullish outlook is driven by the increasing importance of identity spending in the security market.
CyberArk specializes in privileged access management (PAM) solutions, which are considered best-in-class and have the potential to consolidate within the market over time. Hedberg expects the company’s recent acquisition of Venafi to significantly accelerate growth, providing cross-selling opportunities and boosting organic growth back to 20%.
With an estimated total addressable market (TAM) of $60 billion, Hedberg believes CyberArk can sustain an organic growth rate of over 20% for several years. He sees considerable room for growth within CyberArk’s core PAM market.
CyberArk’s shares have risen by 1.31% to $274.78 at the time of publication on Friday.
