Goldman recently initiated coverage of this cyber security company, with a ‘Buy’ rating. The company has also been rumored as a possible takeover candidate. It will announce earnings on May 5, and current EPS estimates are $0.16. The company beat earnings by $0.19 last quarter.
CyberArk (CYBR)
From The Complete Investor
Cyber security, an ever more vital concern in the U.S. and many other places, inherently requires the kind of long-term perspective we praise. That might explain why the best cyber security companies have roots in two countries—Israel and China—where long-term thinking is part of the DNA. In Israel’s case, it’s because any threat is an existential threat. With China, it reflects long cultural tradition.
Israelis founded the two largest dedicated cyber security companies in the U.S., but here we put our spotlight on a third and smaller entry: CyberArk (CYBR). It’s the leading player in “privileged access management” (PAM), which within a corporate structure refers to access to information intended to be available only to people with a critical need to know. Such access must be password-protected and then some.
Founded by a veteran of Israel’s most elite cyber unit, CyberArk is the leading player in protecting the unique gateways to a company’s IT infrastructure, with a 33% and growing market share of the PAM market. Since 2011 both revenues and earnings have grown about fivefold.
More outsized growth lies ahead as the company expands both horizontally by gaining more companies as customers and vertically as existing customers broaden their protection. Because its public debut was less than two years ago, the company has a limited public track record, which has hurt its valuation. This leaves plenty of room for double-barreled gains as profits grow and the valuation expands.
Stephen Leeb, PhD. and Genia Turanova, The Complete Investor, www.completeinvestor.com, 866-833- 2070, May 2016