TD Cowen said Cyberark Software Ltd (NASDAQ:CYBR) is its top midcap pick, noting it believes the company is well positioned to sustain over 20% revenue growth and double-digit profitability in the coming years driven by several factors. These include (1) an end-to-end identity security platform that focuses on intelligent privilege controls, (2) taking advantage of displacement and greenfield opportunities, and (3) a successful transition to a SaaS model resulting in a long-term 'Rule of 40' company.
According to the firm, CyberArk's end-to-end identity security platform covers all aspects of infrastructure, providing intelligent privilege controls. It has consistently been recognized as a leader in Gartner's magic quadrant, and TD Cowen estimates the company’s TAM to be over $50 billion.
The firm believes the breadth of CyberArk's platform is, in some cases, somewhat misunderstood. Indeed, the company remains a constant PAM leader, but it also encompasses workforce and customer access, endpoint privilege security, secrets management, cloud privilege security, and identity management. “In other words, CYBR's end-to-end identity security platform touches almost every potential identity-related use case in the marketplace,” added the firm, reiterating its Outperform rating and $195 price target on the stock.