Wells Fargo Raises CyberArk Software’s Rating to Overweight

Analysts at Wells Fargo raised the rating of CyberArk Software (NASDAQ:CYBR) from Equal Weight to Overweight, setting a target price of $250.00. The analysts explained that the $250 target is based on a 10.0x EV/Sales multiple of their 2025 projections, slightly above the average of 9.4x for similar companies.

This premium is attributed to CyberArk's anticipated higher growth rate in 2025 (mid-20s) compared to its peers (18%). However, this is balanced by concerns about lower profitability and free cash flow. The analysts also noted potential risks, including a decrease in key performance indicators like Annual Recurring Revenue, challenges in gaining market share from established providers, increasing competition from new entrants, and a potential decline in IT spending due to economic downturns.