- CyberArk Software shares moved sharply higher after D.A. Davidson upgraded the stock to Buy with a $180 price target.
- Analyst Andrew Nowinski sees higher demand following the SolarWinds Corporation (SWI) attack and an uptick in fourth quarter reseller demand.
- CyberArk stock moved toward retesting its prior highs, but with relative strength index (RSI) readings moving toward overbought levels, traders could see near-term consolidation.
D.A. Davidson's Andrew Nowinski upgraded the stock from Neutral to Buy and raised his price target from $100 to $180. The analyst sees higher demand for the company's solution following the SolarWinds attack and a strong uptick in fourth quarter reseller demand. Nowinski believes that these trends will continue through 2021 and beyond.
In addition to D.A. Davidson's upgrade, Mizuho's Gregg Moskowitz raised his price target from $123 to $175 per share and reiterated his Buy rating. The analyst said that recent channel checks indicated increased customer interest, while CyberArk's products are likely in the early stages of higher prioritization following an increase in cybersecurity concerns.
From a technical standpoint, the stock moved higher during Tuesday's session to retest prior highs made late last month. The RSI moved toward overbought territory with a reading of 67.69, but the moving average convergence divergence (MACD) remains in a bearish trend. These indicators suggest that the stock has a little more room, but the intermediate-term picture remains less certain.
Traders should watch for a breakout from prior highs of $167.34 over the coming sessions. If that happens, traders could see consolidation at the new trendline support levels as a base for a higher move. If the stock fails to break out, traders could see consolidation between prior highs of $167.34 and reaction lows of $142.78. The bullish fundamentals suggest that the stock could see an upside bias over the coming sessions.
The Bottom Line
CyberArk Software shares moved sharply higher during Tuesday's session after D.A. Davidson upgraded the stock to Buy with a $180 price target. With the stock approaching overbought levels, traders could see some consolidation before or after the stock breaks out from prior highs.
The author holds no position in the stock(s) mentioned except through passively managed index funds.