Intel stock spikes after report of possible US government stake
Investing.com - Evercore ISI has reiterated an Outperform rating on Palo Alto Networks (NASDAQ:PANW) with a price target of $220.00 ahead of the company’s upcoming earnings report, scheduled for August 18. The target sits within the broader analyst range of $130-$235, with InvestingPro data showing the stock currently trading at $168.17.
The research firm expects investors to focus primarily on Palo Alto Networks’ initial fiscal year 2026 guidance, with less emphasis on the pending Cyberark (CYBR) acquisition, which is unlikely to receive significant commentary at this stage. According to InvestingPro analysis, PANW has maintained strong revenue growth of 13.91% over the last twelve months, though multiple valuation metrics suggest the stock is trading at premium multiples.
Evercore ISI has reduced its fiscal year 2026 revenue growth forecast from 13.7% to 12.3%, noting that a below-consensus guidance would align with the company’s recent signaling and should not surprise investors.
The firm observes that investor sentiment appears more subdued compared to previous quarters, reflecting modest revenue and Annual Recurring Revenue (ARR) guidance upside so far in fiscal year 2025, with top-line beats averaging just 1% in the first three quarters.
For the Next-Generation Security ARR, Evercore ISI indicates the market expectation stands at approximately 32.5% year-over-year growth or $500 million in net new ARR, compared to the company’s guidance midpoint of 31.4% growth ($460 million in net new ARR).
In other recent news, Palo Alto Networks announced its intention to acquire CyberArk in a cash and equity deal valued at approximately $25 billion. This acquisition represents a $5 billion premium over CyberArk’s pre-deal value. Following the announcement, Bernstein SocGen Group lowered its price target for Palo Alto Networks to $204, while maintaining an Outperform rating. Piper Sandler upgraded the company’s stock rating from Neutral to Overweight, citing success in platformization and increased bookings, with a new price target of $225. Stifel reiterated its Buy rating with a price target of $225, maintaining a positive outlook on the company. Cantor Fitzgerald also reiterated its Overweight rating, setting a price target of $223, and highlighted the potential of combining CyberArk’s identity capabilities with Palo Alto’s AI security platform. However, KeyBanc downgraded Palo Alto Networks from Overweight to Sector Weight, expressing concerns about the strategic fit of the CyberArk acquisition. These developments reflect varying analyst perspectives on the company’s recent strategic moves.
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