Redburn-Atlantic analyst Nina Marques downgraded Palo Alto Networks (NASDAQ: PANW) from Buy to Neutral with a price target of $325.00 (from $350.00).

The analyst comments: "Near-term expectations have been reset after the announcement of the 'platformisation' strategy. However, consensus expects a sharp reacceleration in dollar growth from FY26 onwards, which we view as unlikely. While Palo Alto is exposed to the same optimisation and deflationary environment as CrowdStrike, we do see Palo Alto skewed to a sticker customer base and a wider moat.

Consensus expects absolute dollars added YoY to reach the highs of 3Q23 of $350m by 4Q25e (Fig 50). This assumes a steep correction in the demand environment and that the highs of the pandemic super-cycle can be reached again."

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Shares of Palo Alto Networks closed at $332.14 yesterday.