CyberArk Software (CYBR, Financial) is getting fresh attention this week after Jefferies highlighted its Venafi platform as a frontrunner in the growing machine identity market.
In a new note, analyst Joseph Gallo said the firm spoke with a machine identity consultant who sees Venafi as a strong leader, even though it was only growing at about 10% year over year when CyberArk acquired it. The expert, Gallo noted, believes the platform is well positioned to pick up speed under CyberArk's ownership.
Gallo is sticking with a Buy rating on the stock and kept his $351 price target in place.
One key reason for Venafi's edge, according to the expert, is its large number of integrations—built over several years—which serve as a major competitive barrier. It's also designed to work across multiple cloud platforms, something that gives it a leg up over rivals.
If just 10% of CyberArk's roughly 8,500 customers adopt Venafi, Gallo estimates it could add around $85 million in recurring revenue—a number he calls very reasonable.
