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CyberArk Software (NASDAQ:CYBR) just smashed through its previous highs, with the stock soaring to over $333.5up a jaw-dropping over 52% year-to-date. This isn't just a lucky streak. With a killer combo of 30% revenue growth and an 81% gross margin, CyberArk is dominating the cybersecurity game as companies scramble to protect their digital assets. Sure, it's trading above InvestingPro's Fair Value estimate, but analysts are still hyped, with price targets reaching as high as $400. And why not? The company just posted a record $240.1 million in Q3 revenue and crushed expectations with 31.3% Annual Recurring Revenue (ARR) growth.
Here's where things get even juicier: a major cybersecurity breach hit the U.S. Treasury, exposing vulnerabilities in a competitor's product. Enter CyberArk. Analysts are buzzing that this could add $40-$50 million annually in net new ARR, cementing its position as the go-to choice for government contracts. State-sponsored attacks are ramping up, and CyberArk is standing tall with a rock-solid balance sheet and no liquidity worries. Forget budget cutscybersecurity is non-negotiable for the government, and CyberArk is perfectly positioned to cash in.
And the future? It looks just as bright. CyberArk is projecting Q4 revenue of $297$303 million, blowing past consensus estimates. Plus, their recent acquisition of Venafi adds machine identity security to their arsenalan ARR growth goldmine. Analysts are throwing around price targets like confetti, with Baird going as high as $370. CyberArk isn't just riding the cybersecurity waveit's leading it. If you're looking for the next big thing in tech, CyberArk is making one hell of a case.
This article first appeared on GuruFocus.