Piper Sandler reiterates Overweight rating on Palo Alto Networks stock

Investing.com - Piper Sandler has reiterated an Overweight rating on Palo Alto Networks (NASDAQ:PANW) with a price target of $225.00. The cybersecurity giant, currently valued at $117.5 billion, has shown robust financial performance with revenue reaching $8.87 billion and an impressive gross margin of 73.56%. According to InvestingPro analysis, the stock is currently trading near its Fair Value.

The research firm highlighted accelerating trends across multiple metrics in Palo Alto Networks’ fourth quarter results, which exceeded expectations. Key performance indicators showing quarter-over-quarter improvement included RPO (remaining performance obligations), total revenue, RPO bookings, new platformed customers, and NGS NNARR (next-generation security non-GAAP annual recurring revenue). With revenue growth of 13.91% and strong cash flows, the company maintains its position as a prominent player in the software industry. InvestingPro subscribers can access 12+ additional key insights about PANW’s financial health and market position.

Piper Sandler noted that the cybersecurity company’s strong exit rate for the fiscal year has resulted in guidance for the coming fiscal year that exceeds market expectations and surpasses previous concerns.

The firm also mentioned that the free cash flow synergies from the CYBR combination were over 80 basis points above their initial projections for fiscal year 2028.

Palo Alto Networks remains a top investment idea in Piper Sandler’s coverage universe, with the firm maintaining its $225 price target on the stock.

In other recent news, Palo Alto Networks has reported strong fiscal fourth-quarter results, demonstrating resilience in the cybersecurity sector. The company showed significant outperformance in product revenue, remaining performance obligations (RPO), and operating margin, although its next-generation security annual recurring revenue (NGS ARR) showed less upside than in previous quarters. BofA Securities upgraded the company’s stock rating from Neutral to Buy, citing strong growth with NGS ARR growing 32.2% year-over-year, slightly exceeding analyst expectations.

Additionally, UBS raised its price target for Palo Alto Networks to $200, maintaining a Neutral rating, following what it described as a positive shift after the company’s Cybr acquisition. Evercore ISI reiterated its Outperform rating and maintained a $220 price target, noting the strong performance driven by software firewalls, which accounted for 56% of product revenue in the quarter. Guggenheim also adjusted its price target to $135 while maintaining a Sell rating, acknowledging the company’s fiscal year 2026 guidance exceeded consensus estimates. These developments highlight Palo Alto Networks’ robust financial performance and positive outlook from various analyst firms.

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