CyberArk Software (CYBR) reported "strong" Q4 results with 30% organic annual recurring revenue growth, surpassing expectations, Morgan Stanley said in a report on Friday.

The information security company reported Q4 non-GAAP net income of $0.80 per diluted share Thursday, slightly down from $0.81 last year, while revenue rose to $314.4 million from $223.1 million.

"On the call, management doubled down on their position as the Identity Security platform for humans (employees), machines and now AI agents, which represents the next frontier and [total addressable market] expansion opportunity," Morgan Stanley said.

CyberArk's broader platform continues to gain traction, with 50% of new customers purchasing multiple products. Secrets Manager, or Conjur, showed strong Q4 momentum and has the potential to become a $100 million ARR product, and the acquisition of Zilla Security enhances CyberArk's coverage of the three core pillars of Identity Security-Access Management, Privileged Access, and Identity Governance & Administration, the report said.

The company's upcoming analyst day on Feb. 24, is expected to be a positive catalyst, likely introducing new three-year targets through 2028, the brokerage said.

Morgan Stanley kept and equal-weight rating on CyberArk, and raised its price target to $390 from $316.

"[W]e revise our top and bottom line estimates to account for business trends remaining healthy and potential upside from machine identity adoption over the next few years," the brokerage said.

Price: 405.48, Change: -8.83, Percent Change: -2.13