Palo Alto Networks stock price target raised to $255 from $230 at TD Cowen

Investing.com - TD Cowen raised its price target on Palo Alto Networks (NASDAQ:PANW) to $255 from $230 on Thursday, while maintaining a Buy rating ahead of the cybersecurity company’s upcoming first-quarter earnings report. This target aligns with broader analyst optimism, as InvestingPro data shows 37 analysts have revised their earnings upwards for the upcoming period.

The firm cited several positive trends supporting its outlook, including successful platformization efforts, rapid adoption of Palo Alto’s artificial intelligence solutions, and an ongoing firewall refresh cycle supporting Next-Generation Security Annual Recurring Revenue growth of 29% year-over-year. As a prominent player in the software industry, Palo Alto has maintained solid revenue growth of 14.9% over the last twelve months.

TD Cowen also expressed confidence in Palo Alto’s acquisition of CYBR, which it expects to be completed within or ahead of the anticipated deadline, with quick integration to follow.

The research firm noted that Palo Alto Networks shares have gained approximately 20% year-to-date, essentially in line with the Nasdaq’s 21% performance during the same period.

Palo Alto Networks is scheduled to report its fiscal first-quarter results on November 19 after market close, with TD Cowen’s new price target reflecting an enterprise value to fiscal 2027 estimated revenue multiple of approximately 15x.

In other recent news, Palo Alto Networks has captured attention with several noteworthy developments. Jefferies raised its price target for the company to $250, expressing confidence in Palo Alto Networks’ ability to meet its first-quarter revenue and other key metrics. UBS also adjusted its price target upward to $230, maintaining a Neutral rating, and noted a "mostly positive" market sentiment. On the product front, Palo Alto Networks launched Cortex AgentiX, aimed at enhancing security for AI agents, and introduced Cortex Cloud 2.0, which features autonomous AI agents to improve cloud security. Additionally, the company released Prisma AIRS 2.0, integrating Protect AI technology to secure enterprise AI systems. These advancements are designed to address security gaps in AI and cloud environments. Palo Alto Networks continues to focus on innovation, particularly in the realm of cybersecurity solutions.

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