Update shared on 29 Oct 2025
Fair value Increased 0.70%Analysts have modestly increased CyberArk Software's price target to $473.55. They cite the anticipated takeover by Palo Alto Networks and the strategic potential of the acquisition, even in light of recent industry downgrades.
Analyst Commentary
Recent analyst commentary reflects a divided view on the implications of CyberArk Software's pending acquisition by Palo Alto Networks. While some analysts point to strategic and market growth benefits, others have tempered their outlooks due to acquisition dynamics and sector trends.
Bullish Takeaways- Bullish analysts highlight that the acquisition positions Palo Alto Networks strongly within the emerging AI security landscape, where early indications suggest leadership potential and long-term growth opportunities.
- The acquisition is viewed as offering strategic rationale, with favorable industry feedback supporting expectations for significant synergies and enhanced market share.
- Platform strategies, especially those emphasizing comprehensive cybersecurity offerings, are gaining traction. These strategies are expected to drive continued revenue and free cash flow growth, including pro forma figures that exceed previous expectations.
- Bearish analysts have downgraded CyberArk’s rating in light of the pending takeover and cite a lack of significant upside potential following the acquisition announcement.
- There is an expectation of investor outflows from CyberArk as the acquisition proceeds, which could lead to volatility and strength in competing cybersecurity names.
- Several research firms caution that the premium priced into CyberArk shares may fully reflect the anticipated deal value, limiting further near-term appreciation.
- Mixed industry feedback and concerns over frothy sector valuations may temper expectations for sustained outperformance after the acquisition.
What's in the News
- Canaccord downgraded CyberArk to Hold from Buy and raised the price target to $502, reflecting the pending takeover by Palo Alto Networks (Periodicals).
- CyberArk announced significant enhancements to its Machine Identity Security portfolio, providing automated discovery, policy enforcement, and management capabilities as organizations face increased machine identity risks (Key Developments).
- CyberArk scheduled a Special/Extraordinary Shareholders Meeting for November 13, 2025, in Petach-Tikva, Israel (Key Developments).
- Optiv successfully deployed CyberArk's Workforce Identity Security solution, migrating over 2,500 employees in under 30 days without disrupting business operations (Key Developments).
- CyberArk is participating in a national NIST-led DevSecOps project and is joining technology leaders like Google, Microsoft, and Palo Alto Networks to enhance software supply chain security (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $470.27 to $473.55.
- Discount Rate has decreased marginally from 10.87% to 10.84%.
- Revenue Growth projections remain nearly unchanged, shifting from 19.89% to 19.88%.
- Net Profit Margin has fallen modestly from 4.53% to 4.33%.
- Future P/E has increased from 417.29x to 439.56x. This reflects changed market expectations for earnings.
Disclaimer
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