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Investing.com - TD Cowen analysts issued positive comments about the rumored acquisition of Cyberark Software (NASDAQ:CYBR) by Palo Alto Networks (NASDAQ:PANW), a prominent player in the software industry with a market capitalization of approximately $129.5 billion and strong revenue growth of ~14% over the last twelve months.
The Wall Street Journal reported that Palo Alto Networks could be looking to acquire Cyberark Software, the leading Identity platform provider, for more than $20 billion, according to TD Cowen’s research note. According to InvestingPro analysis, PANW currently trades above its Fair Value, with strong financial health metrics and a comprehensive score of 3.11 (GREAT).
TD Cowen analysts believe a potential deal would be viewed favorably due to the combination of platform leaders in Network/Cloud/Data security and Identity & Access Management.
The analysts highlighted additional positive factors including strong Israeli R&D hubs at both companies and management teams "focused on relentless execution."
TD Cowen also noted that if the acquisition materializes, "PANW would become the CRM of the cyber market," suggesting Palo Alto Networks could achieve a dominant position similar to Salesforce (NYSE:CRM) in its sector.
In other recent news, Palo Alto Networks has completed its acquisition of Protect AI, a firm specializing in securing artificial intelligence applications and models. This acquisition is set to enhance Palo Alto Networks’ Prisma AIRS platform by incorporating advanced capabilities in model scanning and AI security. Additionally, Stifel has maintained a buy rating on Palo Alto Networks with a price target of $225, although it revised its fiscal year 2026 revenue growth estimate to 12% year-over-year, slightly below the consensus estimate. Meanwhile, Goldman Sachs also reiterated its buy rating, emphasizing the company’s potential to meet or exceed market expectations for next-generation security annual recurring revenue. This revenue metric is crucial as it includes advanced subscription services and newer offerings like Cortex and Prisma AIRS. UBS, however, maintained a neutral rating with a price target of $200, expressing some concerns about the potential for accelerated growth in subscription and support revenues. The cybersecurity sector, according to a Stifel survey, remains resilient, with Palo Alto Networks showing strong performance alongside other companies like Zscaler (NASDAQ:ZS) and Cloudflare (NYSE:NET).
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