CyberArk Software (CYBR - Get Report) sailed ahead Wednesday after an analyst upgraded shares of the cybersecurity company.

CyberArk's stock price jumped 2.58% to $118.97 on news of the upgrade to outperform by Cowen.

Initiating coverage of the stock, Cowen analyst Nick Yako cited the company's growth in the Privilege Access Security sector. Also known as Privilege Access Management, PAM allows IT teams limit access to information by individual employees to just that data needed for their work.

The upgrade comes roughly two weeks after the Newton, Mass.-based CyberArk reported strong second-quarter earnings, beating analysts' estimates on both profit and revenue.

Increased demand for Privilege Access Security helped drive a 29% hike in revenue, to $100.2 million, besting the $97.21 million estimate of analysts surveyed by Zacks Investment Research.

The cybersecurity company also reported earnings of 56 cents a share for the quarter, beating Zacks analyst estimate of 47 cents. CyberArk reported a 27% increase in license revenues, with its Application Access Manager product accounting for 9% and its Endpoint Privilege Manager offering driving 7% of the increase.

CyberArk also raised its revenue guidance for 2019. CyberArk now expects 22-23% revenue growth for the year, upping its forecast to $419-$423 million from $415-$419 million previously.

"Our results exceeded expectations across all guided metrics," said Udi Mokady, CyberArk chairman and CEO, in a press statement on the company's latest quarterly earnings report.

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