Cantor Fitzgerald maintains $223 target on Palo Alto Networks stock

On Wednesday, Cantor Fitzgerald reaffirmed its positive stance on Palo Alto Networks (NASDAQ:PANW) shares, maintaining an Overweight rating and a price target of $223.00. Currently trading at $195.49, the company’s stock is near its 52-week high of $207.24, with InvestingPro data showing an overall financial health score of "GREAT." The firm’s analyst, Jonathan Ruykhaver, expressed confidence in the company’s potential for revenue performance obligations (RPO) upward revisions in the second half of 2025. He anticipates near-term growth in Next-Generation Security (NGS) Annual Recurring Revenue (ARR) for the second quarter of 2025. According to Ruykhaver, the FactSet consensus Net New ARR estimate of approximately $210 million, which indicates a year-over-year decrease of 20%, seems conservative against the backdrop of strong end-demand trends. This outlook is supported by the company’s solid 15% revenue growth over the last twelve months. For deeper insights into PANW’s growth metrics and 17 additional ProTips, consider accessing the comprehensive research available on InvestingPro.

Ruykhaver further noted that he expects Palo Alto Networks’ management to confirm its Free Cash Flow (FCF) guidance of 37-38% for the fiscal year 2025. This projection is supported by robust booking trends and potential operating margin benefits, despite the challenges posed by billings duration headwinds. The company has demonstrated strong cash flow generation, with levered free cash flow reaching $3.08 billion in the last twelve months.

Palo Alto Networks, a leader in cybersecurity solutions, has been focusing on expanding its platform and enhancing its sales strategies, which Ruykhaver believes will contribute to the company’s financial performance. The analyst’s outlook suggests that the company is well-positioned to exceed market expectations in the near term.

Investors and stakeholders in Palo Alto Networks can look forward to the company’s upcoming financial reports and announcements to gauge whether the firm’s performance aligns with Cantor Fitzgerald’s projections. As the fiscal year progresses, the company’s adherence to its FCF guidance and its ability to surpass conservative ARR estimates will be key indicators of its financial health and growth trajectory.

In other recent news, Palo Alto Networks is attracting attention from several financial firms. JPMorgan maintains an Overweight rating on the company’s stock, citing anticipated strong second-quarter fiscal results and active deal engagements. Wedbush Securities, while reducing its price target for the cybersecurity company, retains an Outperform rating, expecting strong cybersecurity deal activity. Rosenblatt Securities has increased its price target for the company, foreseeing a robust second quarter driven by several factors, including a firewall refresh cycle and solid customer retention. KeyBanc Capital Markets has also raised its price target, following positive feedback from the company’s partners and an encouraging fiscal second-quarter setup. Lastly, TD Cowen maintains a positive outlook on Palo Alto Networks, reiterating a Buy rating and expecting a strong demand rebound for its Next-Generation Security products. These are recent developments, and investors are keenly watching the company’s upcoming financial results.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.