Shaul Eyal, an analyst from TD Cowen, reiterated the Buy rating on Palo Alto Networks. The associated price target remains the same with $230.00.
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Shaul Eyal has given his Buy rating due to a combination of factors that highlight the strong performance and promising outlook of Palo Alto Networks. The company has shown robust results in the fourth quarter of fiscal year 2025, marking its fifth consecutive year of achieving the rule-of-50 performance. This success is driven by significant contributions from its SASE, XSIAM, and Software firewalls, along with strong performance across major verticals, including a notable improvement in public sector bookings.
Furthermore, the company’s Next-Gen Security ARR has increased by 32% year-over-year, and both subscription and product revenues have surpassed consensus estimates. The substantial increase in RPO to $15.8 billion, up 24% year-over-year, further underscores the company’s healthy performance and visibility. Additionally, the management’s projection of a 40%+ free cash flow margin for the combined PANW and CYBR by fiscal year 2028, along with a positive outlook for fiscal year 2026, reinforces the strategic merits of the company’s initiatives and acquisitions.
According to TipRanks, Eyal is a top 100 analyst with an average return of 25.5% and a 66.80% success rate. Eyal covers the Technology sector, focusing on stocks such as Check Point, Fortinet, and Cloudflare.
In another report released today, Barclays also maintained a Buy rating on the stock with a $215.00 price target.