Despite Its Downgrade, William Blair Remains Long-Term Positive On CyberArk’s Fundamentals

William Blair analyst Jonathan Ho downgraded shares of CyberArk Software (NASDAQ:CYBR) to Market Perform rating, as recent share price appreciation is presenting a balanced risk/reward scenario. No price target was provided.

Ho wrote, “We are downgrading CyberArk from Outperform to Market Perform based on valuation. We continue to have a favorable long-term view of the company’s business and competitive positioning and do not believe fundamental drivers have changed for the company either for the near term or longer term. We continue to believe the company will deliver strong results against relatively conservative guidance and see upside to estimates based on its strong performance.”

“However, we believe much of the optimism regarding the stock is reflected in the current valuation of 12.6 times our 2016 estimate of $141 million on an enterprise-value-to-revenue basis. While CyberArk delivered strong quarterly results and is clearly an attractive play in the cybersecurity space, we believe the current valuation reflects an appropriate risk/reward scenario over a multiyear period.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jonathan Ho has a total average return of 6.5% and a 56.3% success rate. Ho is ranked #1364 out of 3385 analysts.

Additionally, Deutsche Bank and Oppenheimer have also released research reports recently initiating Hold and Outperform ratings on CYBR, respectively.

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