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With a market cap of $107.2 billion, Palo Alto Networks, Inc. (PANW) delivers global cybersecurity solutions. Headquartered in Santa Clara, California, the company specializes in next-generation firewalls, offering enhanced visibility and control over applications, users, and content. Palo Alto Networks' products safeguard against diverse threats while streamlining IT security infrastructure and reducing costs.
Shares of this cybersecurity giant have outperformed the broader market over the past 52 weeks. PANW stock has soared 51.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 19.7%. In 2024, PANW’s shares are up 12.3%, compared to SPX's 12.1% gains on a YTD basis.
Zooming in further, PANW has also outpaced the iShares Cybersecurity and Tech ETF’s (IHAK) 1.5% gains on a YTD basis.
Palo Alto Networks reported its fiscal Q3 results on May 20. The company’s shares fell 3.7% the following day due to a disappointing Q4 billings forecast, highlighting concerns about a potential deceleration in cybersecurity spending.
For the current fiscal year ending in July 2025, analysts project a 16.3% increase in the EPS, reaching $3.42 on a diluted basis. The company's earnings surprise history is impressive. It beat or matched the consensus estimate in the last four quarters.
Among the 44 analysts covering the stock, the consensus is a “Strong Buy.” That’s based on 30 “Strong Buy” ratings, two “Moderate Buys,” and 12 “Holds.”
This configuration is more bullish than three months before, with 28 “Strong buys.”
On Aug. 9, Gray Powell, an analyst from BTIG, reiterated a “Buy” rating for Palo Alto Networks, with a price target of $366, implying a potential upside of 10.5% from current levels.
The mean price target of $343.72 represents a premium of just 3.8% to PANW’s current levels. The Street-high price target of $390 implies that the stock could rally as much as 17.8%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
