JP Morgan Downgrades CyberArk Software, Upside 'Appears To Already Be Factored Into The Stock'

CyberArk Software Ltd CYBR shares are down more than 12 percent on Monday morning, after JP Morgan analysts downgraded the stock to Underweight, from Neutral. The firm reiterated its $42 price target on the shares, which is below Friday's closing price of $70.35.

Shares traded recently at $61.07, down 12.9 percent.

The analysts wrote, “Closing at just over $70 the stock is trading at roughly 9.7x our best upside scenario for 2016 revenue that we outline (…) It is not that we think the company cannot reach these estimates, but rather this level of upside appears to already be factored into the stock at these levels, suggesting any shortfall to that upside could cause the stock to underperform. As a result we are downgrading to an Underweight rating.”

Ten days ago, Nomura downgraded the stock from Buy to Neutral, setting a $41 price target. Barclays also weighed in this year, reiterating an Equal-Weight accompanied by a $38 price target.