Palo Alto Networks price target raised to $250 from $235 at Jefferies

Investing.com - Jefferies raised its price target on Palo Alto Networks (NASDAQ:PANW) to $250.00 from $235.00 on Wednesday, while maintaining a Buy rating on the cybersecurity company’s stock.

The price target increase represents a 6.4% boost from Jefferies’ previous valuation, with the firm expressing confidence in Palo Alto Networks’ ability to meet its first-quarter top-line metrics, including RPO, ARR, and revenue.

Jefferies noted that while it doesn’t expect a significant raise to the company’s fiscal year 2026 guidance, the current outlook already appears conservative. The firm highlighted U.S. Federal business as a key factor to watch following mixed results from competitors.

The research firm views Palo Alto Networks as relatively insulated from challenges affecting others in the sector. Jefferies also indicated that the company’s fiscal year 2026 free cash flow guidance looks achievable at 38-39% margin compared to 38% in fiscal year 2025.

The new $250 price target is based on 36 times consensus enterprise value to fiscal year 2027 free cash flow, which Jefferies estimates at approximately $4.7 billion.

In other recent news, Palo Alto Networks has unveiled several new products aimed at enhancing cybersecurity measures for enterprises. The company launched Cortex AgentiX, a platform designed to help security operations centers manage AI agents with advanced security controls. Additionally, Palo Alto Networks introduced Cortex Cloud 2.0, an updated cloud security platform featuring autonomous AI agents and a unified Cloud Command Center. This new version aims to address the fragmentation in cloud security tools, which the company claims can leave risks unresolved for extended periods. Furthermore, Palo Alto Networks released Prisma AIRS 2.0, integrating Protect AI technology to secure enterprise AI systems, addressing a market gap where only a small percentage of organizations have adequate security measures. On the financial front, Citizens raised its price target for Palo Alto Networks to $250, maintaining a Market Outperform rating, citing an increase in the EV/FCF multiple. Additionally, TD Cowen highlighted Palo Alto Networks during their Software Bus Tour, noting the company’s strategic growth and AI adoption. These developments underscore Palo Alto Networks’ ongoing efforts to innovate and strengthen its position in the cybersecurity market.

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