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Investing.com - Stifel maintained its buy rating on Palo Alto Networks (NASDAQ:PANW) with a price target of $225.00 on Tuesday. The cybersecurity giant, currently trading near its 52-week high at $204.30, has seen 36 analysts revise their earnings estimates upward for the upcoming period, according to InvestingPro data.
The research firm revised its fiscal year 2026 revenue growth estimate for the cybersecurity company to 12% year-over-year, down from its previous forecast of 13% and below the consensus estimate of 14%. This projection comes as the company maintains strong momentum, with trailing twelve-month revenue growth of 13.91%.
Stifel now expects Palo Alto Networks’ subscription revenue to grow 13.5% year-over-year in fiscal 2026, compared to its earlier projection of nearly 16% and below the consensus estimate of 16%.
The firm raised its product revenue growth forecast for fiscal 2026 to 5% year-over-year from its previous estimate of 1.5%, though this remains below the consensus projection of 6%.
Stifel maintained its fiscal 2026 profitability and cash flow margin estimates for Palo Alto Networks despite these revenue adjustments.
In other recent news, Palo Alto Networks has been the focus of various analyst assessments following its financial updates. Goldman Sachs reiterated its Buy rating with a price target of $231, emphasizing the company’s potential to meet market expectations for next-generation security annual recurring revenue (NGS ARR). This optimism is shared by Scotiabank (TSX:BNS), which maintained its Sector Outperform rating and noted the company’s commendable product revenue growth and strong free cash flow targets. Meanwhile, UBS maintained a Neutral rating, expressing some concerns about the potential for accelerated growth in subscription and support revenues, despite a generally positive outlook from discussions with the company.
BNP Paribas (OTC:BNPQY) Exane also kept its Outperform rating with a $220 target, highlighting the success of Palo Alto Networks’ platform strategy in overcoming macroeconomic challenges. Susquehanna echoed this sentiment, reaffirming a Positive rating and a $230 price target, citing the company’s strong third-quarter performance and strategic initiatives in platformization. Across these analyses, Palo Alto Networks’ ability to adapt and innovate in a challenging environment is a common theme, underscoring confidence in its strategic direction and market position. These recent developments reflect the company’s ongoing efforts to strengthen its market presence and capitalize on growth opportunities in the cybersecurity sector.
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