Cyber security stocks have appreciated significantly over the last 12 months. While many companies have recorded over 100% gains, CyberArk (CYBR, Financial) has remained flat in the reference period. The cyber security market is growing at a great pace and looking at the prospects, I think CyberArk is undervalued, making it a good pick for investors.
According to a report by MarketsandMarkets, cyber security market is estimated to grow to over $170 billion in valuation by 2020. The industry is expected to grow at a CAGR of 9.8% for the next five years. Clearly, the market potential is huge and CyberArk is well positioned to benefit from this trend.
Strong competitive position
CyberArk has the technical benefit of being focused merely on cybersecurity. The concern of cybersecurity is attaining crucial importance, and in my view, companies are starting to identify this. U.S. arms maker Raytheon's (RTN, Financial) current acquisition of Websense for $1.9 billion displays its need to grow into the cybersecurity space vs. its traditional emphasis on defense technologies. This comes on the back of its acquisition of Blackbird Technologies for $420 million in November 2014 last year. The company has the benefit of being a pure cybersecurity play.
CyberArk helps Vodafone secure and manage privileged accounts
CyberArk, the company that defends organizations from cyber-attacks that have made their way inside the network edge, broadcast that Vodafone has executed CyberArk to defend and manage its privileged accounts, identities and applications.
Vodafone choses CyberArk Enterprise Password Vault and CyberArk Privileged Session Manager, part of CyberArk’s inclusive solution, to help safeguard that its privileged accounts are extremely safe while empowering full management of privileged credentials built on security policy, and controlling and monitoring privileged user access across critical technologies.
CyberArk was designated as fragment of a worldwide program to make sure that the finest security solutions are instigated across Vodafone’s worldwide networks. The Privileged User Management Access (PUMA) program contains a number of focus areas pointed at certifying a reliable and solid tactic to safeguarding privileged accounts across the company.
Prevent privileged-based attacks and improve ROI
Nucleus evaluated many CyberArk clients in the healthcare, financial services, engineering and security businesses. The analyst firm observed that CyberArk’s ease of deployment, flexibility in addressing rising security requirements with inadequate further investment and disruption, and integrated platform approach are the main reasons why clients select the company over rivals.
Clients get robust and on-going ROI subsequent from improved productivity in IT and security teams, efficient compliance audits and decreased threat of privileged account compromise. Together, these processes and security welfares delivered for time and cost savings and long-term resource proficiencies.
The value CyberArk conveys to its clients is willingly specious in numerous critical areas, comprising: compact risk and enhanced security; augmented IT admin and security staff productivity; improved internal and external compliance; and cheap audit costs.
Conclusion
Given the rising demand in the cyber security space, CyberArk is definitely undervalued. While the likes of FireEye (FEYE, Financial) and Palo Alto Networks (PANW, Financial) have enjoyed considerable gains in the last one year, CyberArk’s stock has remained flat. Hence, in my opinion, investors looking to profit from the cyber security market should take a look at CyberArk as the stock is modestly valued and is primed for more upside.
