Imperial's Kim Keeps Cyberark Target In Low $40s, Trims Full Year Estimates

On Thursday, Imperial Capital issued a company note on CyberArk Software Ltd. CYBR after the company reported 4Q15 results that exceeded analyst expectations. Analysts at Imperial Capital maintained CyberArk's In-Line rating while lowering their one-year price target from $42 to $41.

Michael Kim, an analyst at Imperial Capital, wrote, "CYBR substantially exceeded our growth expectations in 4Q15, buoyed by strong sales execution and expanding global demand for privileged account security...We believe CYBR could significantly increase its sales capacity, raise market awareness, and expand its portfolio heading into FY17."

Imperial Capital gave two reasons why they believe CyberArk will show strength in 2016:

1. Revenue growth

Analysts noted that CyberArk may be able to grow license sales in FY16 particularly with broader cross-selling and upselling opportunities following the recent acquisition of Viewfinity.

2. Development of new partnerships

Imperial Capital believes that CyberArk may be able to increase the number of partners in their network due to offering continued value-add services, particularly with regards to internet security, which has come into focus with many corporations in recent years. This may allow CyberArk to increase their market share and drive profitability in 2016.

On Thursday, CyberArk is trading at $35.59, down 2.56 percent.