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Investing.com - Rosenblatt has lowered its price target on Palo Alto Networks (NASDAQ:PANW) to $215 from $235 while maintaining a Buy rating on the cybersecurity company’s stock. According to InvestingPro data, PANW currently trades at $176.86, with a market capitalization of $118.13 billion and commands a premium valuation with a P/E ratio of 93.6x.
The firm’s channel checks indicate steady fourth-quarter performance for Palo Alto Networks, with ongoing momentum across software firewalls, firewall refresh, SASE (Secure Access Service Edge), and continued uptake of XSIAM, its AI-powered security operations platform.
Rosenblatt noted that SASE, specifically Prisma Access, is seeing customer expansion as organizations consolidate security services, with early traction for the new Prisma Access Browser as customers look to secure GenAI app usage and browser-based workflows.
The firm expects revenue growth above both its own and the Street’s 14% estimate, compared to the company’s fiscal year 2025 guidance of 14.5%, with strength flowing through to better-than-expected operating margins and a potential earnings beat.
The price target reduction to $215 applies a 13.5x EV/CY26 Sales multiple (versus 14.4x previously), reflecting 12.5% growth and is based on reduced fiscal year 2026 estimates, according to Rosenblatt. With earnings scheduled for August 18, investors can access comprehensive valuation metrics and 14 additional ProTips through InvestingPro’s detailed research report.
In other recent news, Palo Alto Networks has been the focus of several analyst updates and strategic developments. The company is set to announce its upcoming earnings report, with Evercore ISI reiterating an Outperform rating and setting a price target of $220, emphasizing the importance of Palo Alto Networks’ initial fiscal year 2026 guidance. In a significant move, the company announced its intention to acquire CyberArk in a deal valued at approximately $25 billion, which represents a $5 billion premium over CyberArk’s pre-deal value. Bernstein SocGen Group responded by lowering its price target to $204 while maintaining an Outperform rating.
Piper Sandler upgraded Palo Alto Networks from Neutral to Overweight, raising its price target to $225, citing the company’s early platformization success and positive channel feedback. Stifel also reiterated a Buy rating with a price target of $225, maintaining a positive outlook on the company’s prospects. Meanwhile, Cantor Fitzgerald reiterated an Overweight rating with a price target of $223, highlighting the potential synergies between CyberArk’s identity capabilities and Palo Alto’s AI security platform. These developments indicate a dynamic period for Palo Alto Networks as it continues to navigate its strategic initiatives and market positioning.
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