Palo Alto Networks stock rating reiterated at Buy by TD Cowen

Published 19/08/2025, 10:50
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Investing.com - TD Cowen has reiterated its Buy rating on Palo Alto Networks (NASDAQ:PANW) with a price target of $230.00 following the company’s fourth-quarter fiscal results. The cybersecurity giant, currently valued at $117.5 billion, trades at a P/E ratio of 93.8x, reflecting high growth expectations. According to InvestingPro data, analysts maintain a Strong Buy consensus with targets ranging from $130 to $235.

The research firm cited Palo Alto Networks’ strong fourth-quarter performance and fiscal year 2026 outlook as key factors supporting the rating decision. TD Cowen noted that the macroeconomic environment appears healthy for the cybersecurity firm. The company’s recent performance shows solid revenue growth of 13.9% and impressive free cash flow of $3 billion in the last twelve months.

The analyst highlighted accelerating platform metrics and strong execution, which keep management on track toward its $15 billion annual recurring revenue goal by fiscal year 2030. Healthy fundamentals were also mentioned as supporting an improved outlook for fiscal year 2026.

TD Cowen expressed a positive view on Palo Alto Networks’ acquisition of Crowdstrike (CYBR), noting that the combined companies’ free cash flow margin is expected to exceed 40% in fiscal year 2028.

The firm maintained its $230 price target, reflecting confidence in Palo Alto Networks’ continued growth trajectory and strategic direction in the cybersecurity market.

In other recent news, Palo Alto Networks reported strong fiscal fourth-quarter 2025 results, with earnings per share (EPS) of $0.95, surpassing the consensus estimate of $0.88. The company also achieved revenue of $2.54 billion, exceeding analyst expectations of $2.50 billion, marking a 15% year-over-year increase. Palo Alto Networks recorded a Next-Generation Security Annual Recurring Revenue (NGS ARR) of $5,580 million, reflecting a 32% growth from the previous year. Jefferies maintained its Buy rating on the company, highlighting its robust free cash flow of $955 million for the quarter, which resulted in a 37.6% free cash flow margin, surpassing expectations. Citizens JMP reiterated a Market Outperform rating with a price target of $212.00, while BTIG kept a Neutral rating, acknowledging the company’s solid performance. Raymond (NSE:RYMD) James maintained its Market Perform rating, noting strong revenue and bookings metrics driven by large multiyear deals. Palo Alto Networks’ initial fiscal year 2026 outlook has also exceeded market expectations, according to BTIG.

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