In a report released yesterday, Fatima Boolani from Citi downgraded CyberArk Software to a Hold, with a price target of $524.00.
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Fatima Boolani has given her Hold rating due to a combination of factors related to the pending acquisition of CyberArk Software by Palo Alto Networks (PANW). The decision to downgrade the stock from Buy to Neutral reflects the expected completion of the transaction under the current terms, which include a cash offer and PANW shares per CYBR share. Boolani believes that the acquisition will likely proceed without any competitive bids or regulatory hurdles, and the valuation of CYBR at approximately 16 times EV/Sales for the fiscal year 2026 is deemed fair.
While the merger is seen as beneficial, with CyberArk’s products potentially gaining from PANW’s extensive enterprise go-to-market capabilities, and PANW advancing its platform strategy, the execution risks associated with PANW’s largest-ever acquisition remain a concern. Therefore, despite the strategic advantages, the Hold rating is maintained due to these uncertainties in execution over the coming quarters.
In another report released on October 27, Truist Financial also maintained a Hold rating on the stock with a $520.00 price target.