JMP Securities Sees Growth In CyberArk Due To Increasing Need For Online Security

JMP Securities on Wednesday issued an update on

after analysts attended the RSA Security Conference in San Francisco. JMP Securities reiterated its Market Outperform rating for CyberArk and issued a $72 price target. Analysts Erik Suppiger and John Lucia wrote, "After speaking with more than 20 industry contacts over the last two days, the most consistent theme we recognized was the accelerating demand for rapid detection and response solutions (what we refer to as internal security), as enterprises have come to the realization that preventing every breach is impossible. Our checks indicate privileged account management (PAM) in particular, which is a form of internal security, is evolving into a key spending priority, and we believe CyberArk is garnering a disproportionate share of that market. "We expect the migration to internal security to drive strong growth in the PAM market over the next several years, and we believe CyberArk's brand name and technology leadership will allow it to control a majority share of the market over time." JMP Securities believes that CyberArk will capitalize on the growing need of internal security and internet breaches for companies around the world. The rise in company databases being hacked has caused security managers to invest a larger portion of its budgets in detection solutions, which CyberArk specializes in. However, JMP notes that competition in the cyber security market is very competitive. While CyberArk maintains a sustainable competitive advantage due to its technology and market strategy, larger companies many begin to take back market share.