Cybersecurity group CyberArk "capitalizing" on recent breaches - Wells Fargo
Investing.com -- Shares in Cyberark (NASDAQ:CYBR) rose in premarket U.S. trading on Monday after analysts at Wells Fargo lifted their rating of the information security group to "overweight" from "equal weight."
In a note to clients also improving their price target to $250 from $166, the Wells Fargo analysts said that the Massachusetts-based group is "capitalizing" on a spate of recent digital attacks on big corporate names.
The analysts noted that recent high-profile breaches, including at casino operators MGM Resorts (NYSE:MGM) and Caesars (NASDAQ:CZR) Entertainment, were "nearly all" related to attackers using stolen identity credentials. They added that CyberArk is a "clear leader" in the market for "privilege access management," an identity security solution that aims to detect and prevent unauthorized entry into critical internal systems.
Citing Chief Executive Matt Cohen, the Wells analysts argued that CyberArk has penetrated "only 50%" of this market, "leaving plenty of room for growth."
They also said demand is "strong" from firms at higher risk of cyberattacks for CyberArk's "endpoint privilege management" business, which focuses on keeping admin privileges from being excessively distributed amongst users.
"[W]e believe the stock is now poised to outperform the market going forward," the Wells analysts said.
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