In a report released today, Mike Cikos from Needham maintained a Buy rating on Palo Alto Networks, with a price target of $230.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Mike Cikos has given his Buy rating due to a combination of factors, primarily highlighting Palo Alto Networks’ impressive financial performance and strategic initiatives. The company’s earnings for the fourth quarter of fiscal year 2025 significantly exceeded expectations, with a notable re-acceleration in Remaining Performance Obligations (RPO) growth to 24% year-over-year. This growth is attributed to the success of their Platformization strategy, which has strengthened their position as a strategic partner for customers.
Furthermore, the company has seen substantial growth in their high-value customer segments, with approximately 50% year-over-year growth in customers generating $5 million-plus and $10 million-plus in Annual Recurring Revenue (ARR) from Next-Generation Security. The Platformization strategy has also resulted in a high Net Revenue Retention (NRR) rate of 120% and low churn rates. Additionally, Palo Alto Networks has set ambitious financial targets, including a Free Cash Flow Margin of over 40% by fiscal year 2028, bolstered by the proposed acquisition of CyberArk. These factors collectively support the Buy rating for Palo Alto Networks’ stock.
In another report released today, Barclays also maintained a Buy rating on the stock with a $215.00 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.