Leading cybersecurity company Palo Alto Networks (NASDAQ:PANW) may soon announce the acquisition of Talon Cyber Security, an Israeli startup. Per a report from The Information, the deal might value Talon Cyber Security in the range of $600 million to $700 million.
This comes after PANW’s recent commitment to acquire Dig Security, an Israeli cloud security startup specializing in Data Security Posture Management (DSPM).
It’s worth highlighting that acquisitions have been a key part of Palo Alto Networks’ strategy to solidify its presence in the cybersecurity market. Further, these acquisitions help Palo Alto Networks develop new products and strengthen its competitive positioning. Notably, PANW acquired 13 companies from 2019 to 2023, which enhanced its innovation pipeline and drove its growth.
With this backdrop, let’s look at what the analysts recommend for PANW stock.
What is the Future of PANW Stock?
Wall Street analysts are bullish about PANW stock. Further, Goldman Sachs analyst Gabriela Borges believes that the company’s distinctive blend of organic growth coupled with an acquisition strategy positions it to sustain growth in an industry that is famous for its rapid product cycles. Furthermore, the analyst expects the company’s cross-selling strategy will contribute to strong long-term unit economics. Borges reiterated a Buy on PANW stock with a price target of $274 on October 26.
Including Borges, PANW stock has received 34 Buy recommendations. Further, it sports four Hold ratings. Overall, Palo Alto Networks has a Strong Buy consensus rating. The average PANW stock price target of $281.83 implies 15.73% upside potential from current levels.
