D.A. Davidson analyst Rudy Kessinger maintained a Buy rating on Palo Alto Networks yesterday and set a price target of $215.00.
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Rudy Kessinger has given his Buy rating due to a combination of factors that highlight Palo Alto Networks’ strong financial performance and promising future outlook. The company delivered impressive fourth-quarter results, with revenue, operating profit, and earnings per share surpassing consensus estimates. Notably, the growth in remaining performance obligations (RPOs) accelerated significantly, driven by large deals and effective execution, indicating robust demand for their offerings.
Palo Alto Networks also provided a strong guidance for fiscal year 2026, with expectations for revenue, annual recurring revenue (ARR), and free cash flow margins all exceeding consensus forecasts. The company’s strategic focus on software firewalls and its ability to secure large contracts have contributed to its positive financial trajectory. Furthermore, the management’s visibility into future cash flows, supported by deferred payments from previously signed deals, enhances confidence in the company’s financial stability. These factors collectively justify the Buy rating and the price target of $215.
In another report released today, Needham also maintained a Buy rating on the stock with a $230.00 price target.
Based on the recent corporate insider activity of 110 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PANW in relation to earlier this year.