This Palo Alto Networks Analyst Turns Bullish On Improving Checks, Pending CyberArk Acquisition

Tech companies are racing to fortify digital defenses as cybersecurity threats surge, reshaping the landscape of digital safety. Field checks for Palo Alto Networks Inc (NASDAQ:PANW) were “surprisingly positive” and a meaningful improvement over the feedback from checks in previous quarters, according to BTIG.

The Palo Alto Networks Analyst: Analyst Gray Powell upgraded the rating to Buy, while establishing a price target of $248.

The Palo Alto Networks Thesis: The checks instill greater confidence in the company’s ability to achieve its targeted 14% total revenue growth and 26% growth in NGS ARR (next-generation security annual recurring revenue) in fiscal 2026, Powell said in the upgrade note.

Check out other analyst stock ratings.

The checks not only indicate higher adoption of Palo Alto’s platform, but also larger ELAs (enterprise license agreements) versus the previous quarter, he added.

Feedback from checks was also positive for the pending acquisition of CyberArk Software Ltd (NASDAQ:CYBR), the analyst stated.

“With the NGS portfolio increasing to 65%+ of the revenue mix in FY27, we think PANW can maintain 12%+ growth over the next few years,” he further wrote.

PANW Price Action: Palo Alto Networks shares were up 1.80% at $212.29 at the time of publication on Monday. The stock is approaching its 52-week high of $217.94, according to Benzinga Pro data.

Palo Alto Networks, with a market cap of $143.70 billion, operates in the highly competitive information technology sector, specifically within software, where it has shown remarkable growth potential. Its P/E ratio of 130.34 indicates a premium valuation, reflecting investor optimism about its future earnings, despite the lack of dividends.

Meanwhile, the stock’s 52-week range suggests it is currently positioned closer to its high, emphasizing strong market confidence in its cybersecurity solutions amid increasing global demand.

Read More:

Photo: Shutterstock