BofA: Cyberark Is A 'Critical' Element Of Cyber Defense

Cybersecurity provider Cyberark Software Ltd (NASDAQ: CYBR) should be considered a "critical part of cyber defense," according to Wall Street's newest bull analyst.

The Analyst

Bank of America's Daniel Bartus upgraded Cyberark's stock rating from Neutral to Buy with a price target boosted from $51 to $60.

The Thesis

The Israeli company offers one of the "highest focal points" for security managers, Privileged Account Management, Bartus said in the Friday upgrade note.

Less than 40 percent of all large enterprises deploy a PAM product, but this should grow to more than 75 percent by 2020, the analyst said.

Cyberark is positioned for growth as it satisfies growing demand across regions, verticals and organization sizes, Bartus said. The company's products are "proven" and offer customers a high-end solution, he said. 

Bartus named four reasons why Cyberark is a Buy:

• The company is "one of the strongest" players within one of the most critical areas of security.
• Cyberark's valuation remains attractive compared to its peers.
• A large total addressable market should support growth.
• Cyberark's recurring revenue model is "underappreciated."

More than 40 vendors compete with Cyberark, but the company is one of five that account for roughly 70 percent of market revenue, the analyst said. The company is "small enough" to offer customers a complete focus and product breadth, but big enough to be considered a top PAM vendor by third parties, he said. 

Price Action

Shares of Cyberark were trading higher by nearly 1.4 percent Friday afternoon.

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