JPMorgan Views Cyberark As A Standout In Security Group
Cyberark Software Ltd (NASDAQ: CYBR) reported its 1Q16 revenue and EPS significantly ahead of expectations. JPMorgan’s Sterling Auty maintained an Overweight rating for the company, with a price target of $48. The analyst commented that while serval security companies announced healthy earnings, Cyberark’s results “stood out as the most positive.”
Growth And Margins
Cyberark reported its 1Q16 revenue at $46.9M, ahead of the JPM estimate of $42.9M and Street expectation of $43.4M. Non-GAAP EPS came in at $0.23, meaningfully higher than the JPM estimate of $0.15 and Street expectation of $0.16.
“Over $0.05 of the upside came from gross and operating margins as the incremental revenue produced impressive contribution margins,” analyst Sterling Auty wrote. He added that the quarter was clean and that management had allowed the revenue upside to “fall directly to the bottom line.”
2016 Prospects Bright
Auty mentioned that the quarterly beat was particularly surprising, since JPMorgan’s security survey at the beginning of the year had indicated a massive increase in customers looking to undertake privileged security projects during 2016.
Cyberark was among few companies that was generating both growth in excess of 40 percent as well as operating margins north of 20 percent.
Latest Ratings for CYBR
|Feb 2017||Stifel Nicolaus||Initiates Coverage On||Buy|
|Nov 2016||Imperial Capital||Upgrades||In-Line||Outperform|
|Sep 2016||Cowen & Co.||Initiates Coverage on||Market Perform|
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