Tigress Financial initiates Palo Alto Networks stock coverage with Buy rating

Investing.com - Tigress Financial Partners initiated coverage on Palo Alto Networks (NASDAQ:PANW) with a Buy rating and a $245.00 price target on Friday. According to InvestingPro data, this target aligns with the broader analyst consensus, as 37 analysts have recently revised their earnings expectations upward for the upcoming period.

The research firm cited PANW’s accelerating expansion in AI-powered security solutions, integrated platformization, and strong momentum in its subscription-based Next-Generation Security as key factors that will drive significant revenue growth. The company has already demonstrated solid performance with a 14.87% revenue growth in the last twelve months.

Tigress Financial highlighted Palo Alto Networks’ Q4 2025 results, which showed strong revenue growth, robust momentum in next-generation security, and continued strategic platform adoption. InvestingPro’s analysis reveals the company maintains a "GREAT" overall financial health score, with particularly strong performance in growth and profitability metrics.

The firm noted that PANW is well-positioned to benefit from accelerating global demand for cybersecurity, driven by sophisticated cyber threats, rapid digital transformation, cloud migration, generative AI disruptions, new regulatory mandates, and heightened security needs across various sectors.

Tigress Financial also pointed to Palo Alto Networks’ disciplined capital allocation strategy, which includes high-impact acquisitions, prioritization of R&D investments, and efficient cash flow management, as factors that will drive ongoing growth and position the company for sustained leadership.

In other recent news, Palo Alto Networks reported strong fourth-quarter fiscal 2025 results, with a revenue growth of 15.8% year-over-year, surpassing analyst expectations of 14.2%. This performance was largely driven by the company’s success in SASE, XSIAM, and virtual firewalls. Following these results, Truist Securities raised its price target for Palo Alto Networks to $220 from $205, maintaining a Buy rating. In addition, Wedbush added Palo Alto Networks to its Best Ideas List, maintaining an Outperform rating and a $225 price target, citing confidence in the company’s platform strategy after its acquisition of CYBR. Piper Sandler also reiterated an Overweight rating, maintaining a $225 price target, and highlighted the company’s strong fiscal year-end performance and favorable guidance for fiscal year 2026. Citizens JMP reiterated its Market Outperform rating with a $212 price target. Furthermore, Palo Alto Networks launched Prisma SASE 4.0, introducing advanced browser-based security features to combat sophisticated web threats. These developments reflect a period of significant activity and strategic advancements for Palo Alto Networks.

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