Palo Alto Networks (NASDAQ:PANW) shares jumped almost 5% on Thursday after being praised by Baird analysts Shrenik Kothari and Zachary Schneider. They noted that the cybersecurity firm has been focusing on securing long-term customer deals. They also see strong demand for cybersecurity despite tighter IT budgets, as customers secure bigger deals for better discounts in order to prioritize return on investment.
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The Baird analysts pointed out that Palo Alto’s strategy of offering discounts on larger deals helps lock in customers and maximize their lifetime value. The company’s efforts to simplify complex cloud environments and introduce new AI and SASE 3.0 features have received positive early feedback, which has led to longer contract durations.
As a result, Baird maintained its Buy rating on Palo Alto Networks and increased its price target to $360 from $340. It’s worth noting that, so far, Kothari has enjoyed a 92% success rate on PANW stock, with an average return of 32.35% per rating.
What Is the Price Target for PANW?
Overall, analysts have a Strong Buy consensus rating on PANW stock based on 31 Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 36% rally in its share price over the past year, the average PANW price target of $341.88 per share implies that shares are fairly valued.
