Palo Alto Networks (PANW) just launched a new set of AI-powered tools called Cortex AgentiX in order to automate cybersecurity tasks. In fact, these agents can investigate threats and respond to email breaches. They can also work across multiple security platforms. And starting Tuesday, they will be available through Palo Alto’s current cloud services, with a full standalone platform set to arrive next year.
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Notably, CEO Nikesh Arora explained that the new AI agents are a response to customers’ demand for more automation, though most tools will still require a human to oversee their actions. Indeed, as cyber threats become more complex, companies are rushing to adopt AI to defend themselves. For example, cybersecurity firm F5’s (FFIV) stock fell 10% after it revealed it had been hacked by a nation-state earlier this month, which shows just how serious the risks have become.
Arora also warned that many businesses mistakenly think their systems are more secure than they really are. Nevertheless, this AI rollout comes as Palo Alto Networks integrates its $25 billion acquisition of Israeli identity security company CyberArk (CYBR). Arora told CNBC that CyberArk’s products align with Palo Alto’s goal of combining AI and security. He also emphasized that Palo Alto looks for strong products and teams, and once acquired, the firm gives them the freedom to operate independently.
Is PANW Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on PANW stock based on 30 Buys, six Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average PANW price target of $221.91 per share implies that shares are trading near fair value.
