Business in Brief: CyberArk Shares Stage Turnaround After Post-earnings Blowout

Tel Aviv Exchange to launch new, revised indices February 9; Insurers carry Tel Aviv shares higher as Perrigo recovers.

Cyberark

CyberArk shares stage turnaround after post-earnings blowout

CyberArk, whose shares tumbled in the wake of its second-quarter earnings report earlier this week, rebounded on Thursday after analysts said investors had overreacted. “We do not believe that the sequential decline in 2Q deferred revenue signals any change in the company’s medium-term pipeline,”  said Goldman Sachs’ Gabriela Borges, referring to one of the red lights in the report that apparently disturbed investors.  Summit Redstone analyst Srini Nandury reiterated his Buy rating on CyberArk stock and boosted his price target to $60 from $55. CyberArk has “plenty of headroom to grow driven by a shift in security spending from perimeter to protection of internal assets,” he said in a research note. Imperial Capital raised its target to $55 from $45. The positive comments came after the Israeli company reported second-quarter net income of  29 cents a share after adjustments, surpassing the average estimate of analysts surveyed by Zacks Investment Research for 20 cents. CyberArk posted revenue of $50.4 million, beating forecasts for $48.4 million. CyberArk shares were up 3.6% to $53.56 by the afternoon in New York. (TheMarker Staff)

Tel Aviv Exchange to launch new, revised indices February 9

The Tel Aviv Stock Exchange will launch its restructured share indices February 9 next year in a bid to reduce the influence of the biggest companies on the indices and lure more foreign investors, the bourse said on Wednesday. The exchange’s blue chip TA-25 index will expand to 35 companies and be redubbed the TA-35 while the broader TA-100 marker will grow to 125 and the TA-75 to 90. A host of new indices will be added to the TASE stable, including the BlueChip15 Price and the TA-Rimon, which will be made up of companies and structured to meet the needs of foreign investors, the TASE said. TASE economists say the existing indices give too much weight to sectors like pharmaceuticals, banking and energy, which make them less reflective of the economy and more subject to sharp swings.  The companies in the new and restructured indices will be released January 26. (Guy Erez)

Insurers carry Tel Aviv shares higher as Perrigo recovers

Tel Aviv shares ended higher on Thursday, with insurance stocks showing strong gains and tech stock weakness. The benchmark TA-25 index ended the session up 0.3% at 1,467.44 points, while the TA-100 rose 0.4% to 1,286.42, on turnover of 1.19 billion shekels ($310 million). Migdal led insurance stocks on a 2.6% gain to finish at 2.40 shekels while Harel added 1.5% to 14 shekels. Perrigo gained 1.2% to 327 shekels after plunging the day before on disappointing second-quarter earnings.  Deutsche Bank cut its Nasdaq target price for Perrigo $10 to $105, but JP Morgan retrained its Neutral rating on the stock. Big gainers included El Al Airlines, which rose 3.1% to 3 shekels, and SodaStream, which added 3.8% to finish at 111.70. Tech stocks were weighed down by a 1.3% decline for TowerJazz to 56.60 shekels. Volume leader Teva Pharmaceuticals ended down 0.15% at 201.50 shekels. (Omri Zerachovitz)