Palo Alto Networks (PANW) PT Raised to $228 at Scotiabank

Scotiabank analyst Patrick Colville raised the price target on Palo Alto Networks (NASDAQ: PANW) to $228.00 (from $225.00) while maintaining a Sector Outperform rating.

The analyst commented: "We reaffirm our Sector Outperform rating on Palo Alto Networks after a clean beat across the top and bottom line in its F4Q. Many (skeptical) investors we’ve spoken with over the past couple of weeks believe that Palo Alto Networks might be buying CyberArk to mask a slowing business. So, it's great to see the company deliver organically this quarter, adding $2.3B of RPO in 4Q, product revenue growth inflecting-up, and strong FCF margins. The company is guiding to F26 RPO growth of 18% showing nice sustained momentum. We continue to see Palo Alto Networks as one of the best long-term stories in software, benefiting from a sticky core business, and pulling strategic levers to accelerate cybersecurity consolidation that lean into a real advantage. We think adding privileged identity as a new string to the “Platformization” bow makes sense - see Deep Acquisition Analysis. Management guiding to F26 Y/Y FCF margin improvement is nice given the continued shift to annual upfront payments - although partly boosted by lower cash taxes and capex. After a rough, hot summer for PANW shares, we think the stock can grind higher from here as an Agentic AI security winner."

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