Palo Alto Networks stock rating reiterated at Overweight by Cantor Fitzgerald

Published 19/08/2025, 12:40
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Investing.com - Cantor Fitzgerald has reiterated its Overweight rating on Palo Alto Networks (NASDAQ:PANW) with a price target of $223.00, following the cybersecurity company’s strong quarterly performance. According to InvestingPro data, PANW commands a significant market cap of $117.55B and maintains a "GOOD" financial health score, though it currently trades at a premium valuation with a P/E ratio of ~94x.

The company exceeded FactSet consensus expectations across multiple metrics, including revenue, Next-Gen ARR, RPO, free cash flow, and earnings per share, demonstrating continued momentum in platform consolidation efforts. The company has maintained robust revenue growth of ~14% over the last twelve months, with analysts maintaining a strong buy consensus. Get deeper insights into PANW’s performance metrics and 14 additional ProTips with an InvestingPro subscription.

Cantor Fitzgerald expressed confidence in Palo Alto Networks’ recent product initiatives, specifically highlighting Secure Web Browser, Cortex Cloud, DSPM, and Prisma AIRS as key drivers expected to support continued budget share gains in the cybersecurity market.

The firm noted that Palo Alto Networks framed its CyberArk acquisition around expectations that AI agents will accelerate demand for identity security, with the company targeting a 40% free cash flow margin for fiscal year 2028 after completing integration.

Palo Alto Networks’ initial fiscal 2026 guidance exceeded market expectations for both revenue and earnings, despite facing platformization-related revenue recognition headwinds that the company expects to normalize in fiscal years 2027 and 2028.

In other recent news, Palo Alto Networks reported strong fiscal fourth-quarter results, showing a 16% year-over-year revenue growth, which exceeded analysts’ expectations. The company’s product revenue increased by 19%, significantly outperforming Wall Street’s forecast of 15%. Mizuho (NYSE:MFG) maintained its Outperform rating on the stock, with a price target of $210. BofA Securities upgraded Palo Alto Networks from Neutral to Buy, citing strong growth in Next-Generation Security Annual Recurring Revenue, which rose 32.2% year-over-year. This growth slightly surpassed Street estimates and contributed to an increase in the company’s Remaining Performance Obligation by 24.4%. Piper Sandler reiterated its Overweight rating with a price target of $225, highlighting accelerating trends across multiple performance metrics. BMO Capital also raised its price target to $225, maintaining an Outperform rating, following Palo Alto Networks’ "solid report" and promising growth guidance for fiscal year 2026. Despite sector headwinds, the company showed resilience with strong performance in product revenue and operating margin, according to KeyBanc.

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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