Raymond James initiates QXO stock with Outperform rating on acquisition strategy
Investing.com - Piper Sandler has reiterated an Overweight rating on Palo Alto Networks (NASDAQ:PANW) while maintaining its $225.00 price target. According to InvestingPro data, 33 analysts have recently revised their earnings expectations upward, with price targets ranging from $131 to $240.
The research firm has elevated Palo Alto Networks to its top recommendation position among cybersecurity stocks, citing the company’s strong fiscal year-end performance and favorable initial guidance for fiscal year 2026 that exceeded market expectations. The company’s robust performance is reflected in its impressive 73.4% gross margin and 14.9% revenue growth over the last twelve months.
Piper Sandler highlighted several positive catalysts for Palo Alto Networks, including emerging tailwinds from the company’s expansion into identity security through its proposed acquisition of CyberArk (NASDAQ:CYBR).
The firm also noted that ongoing firewall refresh trends continue to support Palo Alto Networks’ product revenue growth, contributing to the positive outlook.
Palo Alto Networks now tops Piper Sandler’s list of preferred stocks in the sector, which also includes Atlassian (NASDAQ:TEAM), GitLab (NASDAQ:GTLB), SailPoint Technologies (NYSE:SAIL), and Check Point Software (NASDAQ:CHKP).
In other recent news, Palo Alto Networks announced the release of Prisma SASE 4.0, which includes new browser-based security features aimed at tackling advanced web threats. This update introduces Prisma Access Browser, offering real-time malware protection. The company reported strong financial results for the fourth quarter of fiscal 2025, with a 16% year-over-year revenue increase to $2.54 billion, surpassing analyst expectations. Product revenue also saw significant growth, rising by 19% year-over-year.
Following these results, several analysts adjusted their price targets for Palo Alto Networks. Truist Securities raised its price target to $220, citing strong revenue growth driven by the company’s performance in SASE, XSIAM, and virtual firewalls. Rosenblatt also increased its price target to $225, maintaining a Buy rating. RBC Capital reiterated an Outperform rating with a price target of $232, highlighting the company’s exceeded expectations and positive forward guidance for fiscal year 2026. Scotiabank raised its price target to $228, noting the company’s strong performance and robust free cash flow margins.
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