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Investing.com - Truist Securities has reiterated its Buy rating and $220.00 price target on Palo Alto Networks (NASDAQ:PANW), representing a 10% upside from the current price of $199.90, following the company’s first-quarter fiscal 2026 earnings report. The cybersecurity giant, now valued at $135.3 billion, trades at a premium P/E ratio of 125.7.
The cybersecurity firm reported strong quarterly results, with continued momentum in its Secure Access Service Edge (SASE), XSIAM, and virtual firewall offerings. Large platformization deals also contributed to the company’s performance. According to InvestingPro data, Palo Alto Networks maintains a "GREAT" Financial Health score of 3.03, with revenue growing at 14.9% year-over-year to $9.22 billion.
Palo Alto Networks announced plans to acquire Chronosphere, a next-generation observability platform, for $3.35 billion in a cash-and-stock transaction. This acquisition will expand the company’s capabilities beyond cybersecurity into the observability space.
The company has raised its long-term annual recurring revenue (ARR) target to $20 billion by fiscal year 2030, up from its previous goal of $15 billion. This new target includes the anticipated contributions from both the Chronosphere acquisition and the previously announced CyberArk purchase.
Truist Securities adjusted its financial estimates for Palo Alto Networks while maintaining its positive outlook on the stock with the unchanged $220 price target.
In other recent news, Palo Alto Networks reported its first-quarter fiscal 2026 results, showcasing a strong financial performance. The company achieved a revenue of $2,474 million, marking a 15.7% year-over-year growth, surpassing both BTIG’s and Wall Street’s estimates. Next-Generation Security Annual Recurring Revenue (ARR) grew by 29% year-over-year, and Remaining Performance Obligations (RPO) increased by 24%, exceeding analyst expectations. Despite these positive results, UBS lowered its price target for Palo Alto Networks to $220, maintaining a Neutral rating, citing a mixed outlook. Meanwhile, TD Cowen upheld its Buy rating with a price target of $255, reflecting confidence in the company’s solid performance. Cantor Fitzgerald reiterated its Overweight rating with a $250 price target, noting the firm’s strong quarterly metrics. Conversely, Guggenheim maintained a Sell rating with a $135 price target, even as the company provided guidance aligning with market expectations. BTIG raised its price target to $248, maintaining a Buy rating due to the company’s robust revenue growth. These developments underscore varied analyst perspectives on Palo Alto Networks’ financial health and future potential.
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