Buy Rating on Palo Alto Networks: De-Risked Growth, Expanding Platform, and Undervalued Multiples Support Upside Potential

In a report released today, Shrenik Kothari from Robert W. Baird maintained a Buy rating on Palo Alto Networks, with a price target of $240.00.

Shrenik Kothari has given his Buy rating due to a combination of factors tied to Palo Alto Networks’ execution, platform breadth, and improving risk‑reward. He expects upside to ARR and RPO versus guidance even against tough comparisons, supported by strong cRPO coverage, rising subscription visibility, and a fiscal 2026 outlook that he views as de‑risked, with further operating leverage and free‑cash‑flow margin gains as recent acquisitions are integrated.

Shrenik Kothari’s rating is based on his view that PANW now represents one of the most comprehensive security platforms, with the CyberArk and Chronosphere deals extending its capabilities into high‑priority identity and observability markets and underpinning raised long‑term ARR and margin targets. At the same time, he notes that the stock’s recent pullback has pushed valuation below historical averages on EV/Sales and EV/FCF, despite stronger structural margins and revenue durability, leaving room for multiple expansion and supporting his Buy recommendation.

In another report released today, Morgan Stanley also reiterated a Buy rating on the stock with a $245.00 price target.

Based on the recent corporate insider activity of 89 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.