Reiterating Buy on Palo Alto Networks: Resilient Fundamentals, Platform Strength, and Justified $200 Target Despite Post-Earnings Pullback

Analyst Gray Powell from BTIG reiterated a Buy rating on Palo Alto Networks and keeping the price target at $200.00.

Gray Powell has given his Buy rating due to a combination of factors tied to Palo Alto Networks’ resilient fundamentals and platform strength. Despite the stock’s pullback after a merely in-line quarter, he notes that overall revenue matched or slightly exceeded expectations, product sales were a key positive, and the long-term outlook for next‑generation security and total revenue remains intact with modest organic guidance raises.

He also emphasizes strong momentum in core network security offerings, including SASE and firewalls, plus solid traction for Cortex XSIAM and a notably robust quarter from Chronosphere that lifts outer‑year estimates without changing the core thesis. Given management’s confidence in back‑end‑loaded NGS growth, increasing large platform deals, and the company’s ability to generate high free‑cash‑flow margins, Powell views a 28x CY27E EV/FCF multiple and $200 price target as justified and reiterates his Buy recommendation.

In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $255.00 price target.

Based on the recent corporate insider activity of 91 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.