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With a market cap of $131 billion, Santa Clara, California-based Palo Alto Networks, Inc. (PANW) provides comprehensive network and cloud security solutions globally. The company's platforms, including Prisma and Cortex, offer advanced protection and threat intelligence for enterprises, government entities, and service providers across diverse industries.
Shares of Palo Alto Networks have outperformed the broader market over the past 52 weeks. PANW has climbed 52.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 33%. In 2024, shares of PANW are up 34.9%, compared to SPX’s 25.3% gain on a YTD basis.
Zooming in further, PANW’s outperformance becomes more evident when compared to the Technology Select Sector SPDR Fund’s (XLK) 29.3% gain over the past 52 weeks and 22.3% return on a YTD basis.
Palo Alto Networks' stock jumped 7.2% on Aug. 20 due to its better-than-expected Q4 2024 results, with adjusted profit of $1.51 per share and sales of $2.2 billion. The company also raised its Q1 2025 guidance, predicting 12% sales growth, and provided a strong outlook for the full year, including a projected $3.5 billion in free cash flow. Additionally, the positive results led multiple investment banks to raise their price targets on the stock, further boosting investor sentiment.
For the current fiscal year, ending in July 2025, analysts expect PANW’s EPS to grow 18.7% year-over-year to $3.56. The company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 47 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 33 “Strong Buy” ratings, two “Moderate Buys,” and 12 Holds.”
This configuration is more bullish than three months ago, with 31 “Strong Buy” ratings on the stock.
On Nov. 14, Stifel raised its price target on Palo Alto Networks to $440, maintaining a “Buy” rating ahead of the company's fiscal Q1 results. The analyst cites positive checks on cyber spending demand and anticipates a potential top-line beat, with FY25 guidance likely reaffirmed or slightly increased.
As of writing, PANW is trading above the mean price target of $389.09. The Street-high price target of $450, implies a potential upside of 13.4% from the current price.
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