Palo Alto Networks stock price target raised to $200 by UBS on strong outlook

Published 19/08/2025, 11:54
© Kfir Sivan, Palo Alto Networks PR

Investing.com - UBS raised its price target on Palo Alto Networks (NASDAQ:PANW) to $200.00 from $185.00 on Tuesday, while maintaining a Neutral rating on the cybersecurity firm’s stock. According to InvestingPro data, analyst targets for PANW range from $130 to $236, with the stock currently trading at a substantial P/E ratio of 93.8x.

The price target increase follows Palo Alto Networks’ fourth-quarter performance, which UBS described as "a step back in the right direction" after sentiment shifted following the company’s Cybr acquisition.

Palo Alto Networks delivered a nearly $5 billion bookings quarter and provided an outlook for fiscal year 2026 that exceeded investor expectations, including 26-27% ARR growth, 17-18% RPO growth, and 14% revenue growth.

The cybersecurity company also offered more clarity on its Cybr acquisition, establishing a new combined adjusted free cash flow margin target of over 40% for fiscal year 2028.

Despite the positive outlook, UBS maintained its Neutral stance on Palo Alto Networks stock, noting that at 29 times enterprise value to free cash flow on calendar year 2026 numbers, the shares appear "appropriately priced."

In other recent news, Palo Alto Networks reported strong fourth-quarter results, with revenue rising by 15.8% compared to the same period last year. The company’s software firewalls drove significant performance gains, making up 56% of product revenue. Analysts from Evercore ISI maintained an Outperform rating, citing the company’s strong performance, while Stifel reiterated a Buy rating, highlighting accelerating bookings growth and a 32% increase in Next-Generation Security Annual Recurring Revenue (NGS-ARR). Guggenheim adjusted its price target to $135, maintaining a Sell rating, and noted that the fiscal year 2026 guidance exceeded consensus estimates. TD Cowen also reiterated a Buy rating, emphasizing the strong fourth-quarter performance and positive fiscal year 2026 outlook. BTIG maintained a Neutral rating, acknowledging that the company’s fiscal year 2026 outlook exceeded market expectations. Palo Alto Networks’ remaining performance obligations grew 24% year-over-year, marking the highest growth rate in seven quarters.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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