10:52 AM EDT, 09/20/2024 (MT Newswires) -- CyberArk Software's ( CYBR ) profitability is "biased upwards" as the company is well positioned to consolidate aspects of the identity market and maintain profitable growth, RBC Capital Markets said in a note Friday.

"We like CyberArk's chances of market consolidation as they come at the opportunity from a security perspective starting in one of the most challenging and high risk areas of identity," RBC said, noting that the "most logical" areas of consolidation are small-to-medium businesses and the enterprise market's lower end.

RBC also said CyberArk's growth drivers include identity security spending, the growth opportunity of its core privileged access management market, and cross-selling opportunities, among others. The investment firm noted that Venafi, which CyberArk acquired earlier this year, will be accretive to margins initially and can become accretive to growth and profitability over time.

RBC Capital Markets initiated coverage on CyberArk Software ( CYBR ) with an outperform rating and a $328 price target.

Price: 276.23, Change: +5.00, Percent Change: +1.84