NEW YORK (TheStreet) -- Shares of Cyberark Software (CYBR) - Get Report surged 9.04% to $53.09 in late morning trading today as Bank of America/Merrill Lynch initiated coverage on the company with a "buy" rating and $60 price target.

"Cyberark offers unique solutions to protect privileged accounts (PAs), accounts that have login authentication credentials to servers, hypervisors, and controls systems that house sensitive information. PA management is an acute issue for corporates, as most cyber-attacks to date have targeted them," analysts said.

"We believe the opportunity is substantial, with corporates having two to four times more PAs than employees. This is reflected in Cyberark's financials, with revenue growth acceleration from 30% in 2012 to 40% and 56% in 2013 and 2014, combined with 86% and 21% gross and operating margins," analysts added.

Cyberark's unique solution, solid growth rates, earnings potential and the growing addressable market warrant a valuation premium in Bank of America/Merrill Lynch's view.

The Street's Jim Cramer, Portfolio Manager of Action Alerts PLUS Charitable Trust Portfolio said today on CNBC's Squawk on the Street that the cyber security stock group is "red-hot."

Additionally, the company's 180-day post IPO lockup expired today, which potentially puts 23,010,768 shares available for resale, according to the SEC filing.

Cyberark Software is an Israel-based security company that provides information technology security solutions that protect organizations from cyber attacks. The company's products include CyberArk Shared Technology Platform, Privileged Account Security Solution and Sensitive Information Management Solution.

CYBR data by YCharts