Market Overview

Cyberark Spikes 18% Following Merger Chatter; Oppenheimer Assigns 'Low Probability' On Transaction

Share:
Cyberark Spikes 18% Following Merger Chatter; Oppenheimer Assigns 'Low Probability' On Transaction
Related CHKP
Check Point CEO Focusing On Cloud, Threat Prevention As The Outlook For 2017 Reads Positive
7 Biggest Price Target Changes For Friday
Week In Review: The Age Of Trump Begins, Netflix Soars, Rails Roar (Investor's Business Daily)
Related CYBR
This Tech Analyst Loves Cybersecurity Stocks in 2017
D.A. Davidson Has Some Concerns About Cybersecurity Spending
Cybersecurity higher following strong Check Point Software Technologies reporting (Seeking Alpha)

Shares of Cyberark Software Ltd (NASDAQ: CYBR) surged higher by nearly 20 percent early Wednesday morning following a report that the company is a potential acquisition target.

Haaretz, an Israeli-based publication, reported that Check Point Software Technologies Ltd. (NASDAQ: CHKP) is in talks to acquire Cyberark.

Both Check Point Software and Cyberark are based in Israel.

Reuters noted that Check Point Software has been active on the M&A front and acquired two small Israeli start-ups in 2015: Hyperwise and Lacoon Mobile Security.

Oppenheimer: 'Low Probability' Based On Check Point's Historical M&A Strategy

Shaul Eyal of Oppenheimer briefly commented in a note that Check Point Software has historically pursued smaller-sized acquisitions. The analyst noted that both of the company's acquisitions in 2015 combined for a cost of less than $200 million.

Cyberark's market cap as of Tuesday's market close was $1.20 billion.

Eyal continued that while Check Point holds $3.6 billion of cash on its balance sheet, an acquisition of Cyberark "would certainly mark a deviation" from its strategy even though "financing such a hypothetical transaction is no hurdle."

"While we never say never, we currently assign such a transaction a low probability based mainly on Check Point Software historical M&A strategy," Eyal wrote before adding "history also has a tendency to rewrite itself."

Shares traded recently at $45.13, up 19.1 percent.

Latest Ratings for CHKP

DateFirmActionFromTo
Jan 2017First AnalysisUpgradesEqual-WeightOverweight
Jan 2017BMO CapitalInitiates Coverage OnMarket Perform
Sep 2016PiperJaffrayInitiates Coverage onOverweight

View More Analyst Ratings for CHKP
View the Latest Analyst Ratings

Posted-In: cyber security CyberarkAnalyst Color News Rumors M&A Analyst Ratings Movers Best of Benzinga

 

Related Articles (CHKP + CYBR)

View Comments and Join the Discussion!