CyberArk (CYBR) Stock Downgraded Amid Pending Palo Alto Networks Acquisition

CyberArk Software Ltd. (NASDAQ:CYBR) is one of the Buzzing AI Stocks on Wall Street. On September 23, Citizens JMP analyst Trevor Walsh downgraded the stock from Market Outperform to Market Perform without a price target. The firm cited the pending acquisition by PANW behind the rating downgrade.

The firm believes that there isn’t a superior proposal at this time, and that the transaction is going to close according to the noted timeline.

“We downgrade our rating to Market Perform from Market Outperform (prior $480 price target) given the pending acquisition by Palo Alto Networks. Both boards have approved Palo Alto’s offer of $45 in cash + 2.2005 PANW shares per CYBR share. CyberArk currently trades at a CY26E EV/revenue multiple of 15.9x, a premium to the mean multiple of 15.0x for our peer group. With shares currently trading modestly above our prior PT, we believe this is a fair valuation and we do not anticipate a superior unsolicited proposal at this time and believe the transaction will close in accordance with the noted timeline.”

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.

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