CyberArk Stock Rises After Treasury Department Hack Hits Rival

Key Takeaways

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.

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