Analyst Peter Weed from Bernstein maintained a Buy rating on Palo Alto Networks and keeping the price target at $225.00.
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.
Peter Weed has given his Buy rating due to a combination of factors surrounding Palo Alto Networks’ strategic moves and market positioning. The company is reportedly in talks to acquire CyberArk, which would significantly enhance its presence in the Identity sector of cybersecurity, a field considered to have substantial growth potential, especially with advancements in AI. This acquisition could allow Palo Alto Networks to capitalize on the expanding demand for Privileged Access Management and Secrets, which are experiencing robust organic growth.
Despite potential challenges such as realizing synergies and managing operational distractions, the acquisition is seen as a strategic fit that could complement Palo Alto’s existing offerings and customer relationships. The potential for sales synergies and R&D talent benefits further supports the positive outlook. While there are concerns about the timing and technical risks associated with AI-driven growth, the overall strategic direction and market opportunities justify the Buy rating.
In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $235.00 price target.
Based on the recent corporate insider activity of 114 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.