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What you need to know
- Morgan Stanley analysts believe CyberArk Software may benefit from the recent Chinese hacking of BeyondTrust, which affected U.S. Treasury Department.
- Morgan Stanley believes that CyberArk’s customers will shift their attention towards the company after this incident. This could be good news for them over the coming years.
- CyberArk holds a 38% share of the privileged access management sector, compared with BeyondTrust's 17%, according to the brokerage analysts.
CyberArk Software’s (CYBR) stock rose after analysts stated that CyberArk stands to profit after BeyondTrust, a rival company was hacked. The hacker was a Chinese government-sponsored actor looking to access U.S. Treasury Department system.
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.
Morgan Stanley has a generally tepid view despite any potential gains. The firm has an “equal-weight” Rating and $316 target price, almost 7% lower than its level Thursday afternoon 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.
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