Cyberark Software Jumps 12% On Analyst Upgrades
Cyberark Software Ltd (NASDAQ: CYBR) shares jumped nearly 12 percent Monday after a couple of investment banks talked up the company's prospects for fast growth.
The computer security company changed hands recently at $54.48, up $5.79 (11.8 percent).
Bank of America's Tal Liani estimates the company will post revenue growth of more than 30 percent this year to $135 million, and although he called it a high-risk investment, Liani launched coverage with a Buy rating and $60 target.
Merrill Lynch similarly launched coverage with a Buy and $42 price objective.
Among nine analysts following the company, five are at Hold, two are at Buy and two at Sell, while the average Wall Street price target is $46.88
Cyberark shares are up more than 80 percent from its September initial public offering.
The stock popped in February with a favorable quarterly earnings report, but then dropped back sharply earlier this month, when a group of insiders sold four million shares at $51 a piece. The company currently has about 30.5 million shares outstanding.
Liani said risks to investors include sky-high Street expectations, a 63 percent stake still held by insiders following its recent sale, and the company's premium stock price relative to its earnings.
Other factors on the cautionary side: the 41 percent of company revenue exposed to foreign exchange and market competition from vastly larger companies like International Business Machines Corp. (NYSE: IBM), Dell Inc. (NASDAQ: DELL) and CA, Inc. (NASDAQ: CA).
But Liani figures Cyberark's technology offers unique advantage in a market driven by a "worsening threat landscape" and increasingly high cost data breaches.
Latest Ratings for CYBR
Mar 2015 | Bank of America | Initiates Coverage on | Buy | |
Mar 2015 | Piper Jaffray | Initiates Coverage on | Neutral | |
Feb 2015 | JP Morgan | Downgrades | Neutral | Underweight |
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