CyberArk (CYBR) Downgraded After Acquisition by Palo Alto Networks

CyberArk Software Ltd. (NASDAQ:CYBR) is one of the 10 AI Stocks Investors Should Keep an Eye On. On July 30, William Blair analyst Jonathan Ho downgraded the stock from Outperform to “Market Perform” following news that the company has agreed to be acquired by Palo Alto Networks.

“Palo Alto Networks’ acquisition of CyberArk significantly advances its platform strategy, in our view, by adding identity security as a core fourth pillar of the company alongside network, cloud, and security operations. CyberArk’s leadership position in PAM and identity security allows Palo Alto to instantly enter a $29 billion market with a mature and sticky platform while enhancing its AI security vision with the need to secure AI agents looming."

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"Integrating CyberArk’s identity intelligence with Palo Alto’s XSIAM creates an end-to-end solution that protects human, machine, and AI agent identities with real-time and least privileged controls. We believe the combined company is well positioned to address the growing identity threat surface (especially as AI workloads proliferate) with a unified platform that also helps reduce vendor complexity.”

CyberArk Software Ltd. (NASDAQ:CYBR) develops, markets, and sells software-based identity security solutions and services.

While we acknowledge the potential of CYBR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Must-Watch AI Stocks on Wall Street and 10 AI Stocks Making Waves on Wall Street Disclosure: None.