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Key Takeaways
- CyberArk Software could benefit from a recent Chinese hack of rival BeyondTrust that affected the U.S. Treasury Department, Morgan Stanley analysts said.
- A shift toward CyberArk by customers after the incident would be a tailwind for the company over the next few years, according to Morgan Stanley.
- CyberArk holds a 38% share of the privileged access management sector, compared with BeyondTrust’s 17%, according to the brokerage analysts.
CyberArk Software (CYBR) shares rose Thursday after analysts said the company stands to benefit after its rival BeyondTrust was hacked by a Chinese state-sponsored actor seeking access to U.S. Treasury Department systems.
CyberArk and BeyondTrust are competitors in the privileged access management (PAM) sector, but the high-profile hack reported by the Treasury Department in a letter to Congress on Monday “likely positions CyberArk as the preferred PAM provider for [the] US government,” according to analysts at Morgan Stanley in a report on Tuesday.
Treasury Hack Might Boost CyberArk’s Market Share
CyberArk holds a 38% share of the PAM market, compared with BeyondTrust’s 17%, the analysts said. A shift toward CyberArk after the Treasury Department hack would be a tailwind for the company over the next few years, “further solidifying [its] dominance” in the sector, they wrote.
However, despite the potential boost, Morgan Stanley holds a tepid outlook overall. The firm holds an “equal-weight” rating and $316 price target, nearly 7% below its Thursday afternoon level of $338.28.
Shares of CyberArk, which gained a further 1.5% intraday Thursday after a 4% rise on New Year’s Eve, rose 52% in 2024.
