Cantor Fitzgerald reiterates Overweight rating on Palo Alto Networks stock

Investing.com - Cantor Fitzgerald has reiterated an Overweight rating on Palo Alto Networks (NASDAQ:PANW) with a price target of $223.00. The cybersecurity giant, currently valued at $113.5 billion, maintains a strong market position with ~14% revenue growth over the last twelve months. According to InvestingPro data, analysts broadly share this bullish stance, with a consensus recommendation of 1.85 (Buy).

The research firm sees significant potential in combining CyberArk’s agentic identity capabilities with Palo Alto’s AI security platform, Prisma AIRS.

Cantor Fitzgerald notes that agentic AI creates unique identity security challenges because it involves machine identities that behave similarly to humans, highlighting the need for platforms that can manage both human and machine identities while enforcing least privilege principles.

The firm believes the acquisition will merge CyberArk’s expertise in human and machine identity management with Palo Alto Networks’ extensive data visibility capabilities.

This combination could potentially establish the foundation for a comprehensive full-stack agentic security solution, according to the research firm’s analysis.

In other recent news, Palo Alto Networks has been actively engaged in acquisition activities, with reports indicating that the company is in discussions to acquire CyberArk for a potential price exceeding $20 billion. This potential acquisition has drawn mixed reactions, with KeyBanc downgrading Palo Alto Networks from Overweight to Sector Weight due to concerns about strategic fit and synergies. However, TD Cowen analysts have issued positive comments regarding the potential deal, highlighting CyberArk’s leading position in the identity platform sector.

Additionally, Palo Alto Networks has completed the acquisition of Protect AI, a firm specializing in securing artificial intelligence applications. This acquisition is intended to enhance Palo Alto Networks’ Prisma AIRS platform by integrating Protect AI’s capabilities in various AI security functions. The cybersecurity sector as a whole remains resilient, according to a Stifel survey, which reported strong performance for Palo Alto Networks among others.

The survey also noted stable performance for CyberArk, despite some regional challenges in EMEA markets. These developments come amid a backdrop of strategic moves by Palo Alto Networks to expand its capabilities and offerings in the cybersecurity domain.

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