Category Archives: oud

CyberArk Defies Broad Security Tumble On ‘Broadening’ Sales Views

CyberArk Software ( CYBR ) stock lifted Thursday on a bullish report from Imperial Capital that sees an 8% upside to the privileged account manager’s Q1 earnings, posted early this month, driven by increased cross-selling opportunities and broader greenfield adoption. Imperial Capital analyst Michael Kim kept his in-line rating on CyberArk stock, but boosted his price target to 45 from 41. In early afternoon trading on the stock market today , CyberArk stock was up 2%, near 42, and touched a six-week high at 42.94. But shares are 16% off a 2016 high of 49.56, achieved Jan. 22. The lift defied a fractional decline in IBD’s 26-company Computer Software-Security industry group. Shares of Imperva ( IMPV ), FireEye ( FEYE ),  Check Point Software Technology ( CHKP ) and  Symantec ( SYMC ) were all down more than 1% apiece Thursday afternoon. “At current levels, we think CyberArk shares offer balanced risk/reward,” Kim wrote in a research report. “Investors could become more constructive as the company gains greater scale and broader adoption of its new offerings.” Kim expects less volatile near-term license revenue growth and margin expansion. But he cut his 2017 earnings per share minus items view to $1.14 from $1.16 on expected investments in growth. Wall Street models $1.13, up 23% above 2016 views for 92 cents. CyberArk still has runway to add new customers, Kim wrote. During Q1, CyberArk added 100 new customers, bringing the company’s installed base to 2,600. Nearly a third of new customers added three or more products, “highlighting the company’s broadening cross-selling and up-selling opportunities.” In Q1, CyberArk also doubled its sales in its government, health care, retail, media and education segments. License revenue grew 38% vs. the year-earlier quarter, trailing 50% growth in the maintenance and professional services business.

PayPal Stock Slides As Investor Day Leaves Analysts With Questions

Digital payments giant PayPal ( PYPL ) was down midday Thursday, after its investor day showcased its ambitious plans but failed to alleviate Wall Street’s fears of competition. Management emphasized the breadth of the platform, covering not only the traditional online payment capability but newer technologies at point of sale, ATMs, social media and customized applications for merchants. Executives hope to entice consumers to put more of their spending through PayPal by offering budgeting and money-management capabilities, while enticing merchants with the PayPal Credit offering. The OneTouch payment app has also taken off as a response to the increasing number of purchases made over mobile phones. Management also discussed the rise of “contextual commerce,” the trend toward technologies predicting consumer buying habits and bringing products to the consumer rather than the consumer going out and seeking them. Repeatedly, they pointed to the sheer size of PayPal’s network, after 17 years of existence, as bringing a key advantage over competing platforms in penetrating these new markets. However, Pacific Crest analyst Josh Beck wasn’t so sure. “PayPal highlighted a dramatic shift in commerce, underscored by diverging performance at Target ( TGT ) and Amazon ( AMZN ), which creates opportunity and risk,” Beck wrote in a research note. “Whether PayPal will be able to retain its competitive moat as Apple ( AAPL ), Amazon, Stripe and Visa ( V ) focus on mobile and contextual commerce remains unclear to us.” Beck retained a sector weight rating on PayPal stock. Margins Remain A Concern Management affirmed previous financial guidance, including that profit margins will be “stable to up.” Pretax margins took a definite hit last year as the company has invested in new projects, such as the recently acquired financial-remittance company Xoom. “While we believe management did an exceptional job explaining Paypal’s differentiation (serving both consumers and merchants; expanding relevance by providing solutions from Braintree, Paydiant, PayPal, Xoom and Credit), an intensifying competitive landscape, combined with the company’s margin outlook remain our biggest concerns,” wrote Sterne Agee CRT analyst Moshe Katri in a research note affirming his neutral rating. Credit Suisse analyst Paul Condra, who holds a buy rating on the stock, emphasized the positive. “Our conviction on the stock was strengthened from (1) commentary that the credit business is not more than high single digits percent of profit (well below speculation of around 25%) and will likely not grow beyond 2% to 3% of payment volume; and (2) increased visibility on growth outlook as management expects to double payment volume in four years, implying 20% total payment volume growth through 2019,” Condra wrote. PayPal stock was down nearly 3.5% in midday trading on the stock market today , near 37.50. The stock holds a good IBD Composite Rating of 88 but its Accumulation/Distribution Rating has been deteriorating lately, to a grade of D+, indicating more institutions are selling than buying. RELATED: Apple Pay Rival MCX, Visa Loom At PayPal Analyst Day