Palo Alto Networks Inc Stock Forecast:
According to 41 analysts, the projected average target price for Palo Alto Networks Inc over the next year is USD 218.07, and the average analyst rating for the stock is “Strong Buy.” However, Stock Target Advisor‘s own analysis of the company’s stock is “Neutral,” based on four positive and four negative signals. Currently, the stock is priced at USD 166.89, which represents a decrease of 1.91% in the past week, an increase of 14.23% in the past month, and an increase of 3.84% in the past year.
Palo Alto Networks News:
Palo Alto Networks’ revenue in the second quarter of fiscal year 2023 increased by 26% compared to the same period in the previous year, reaching $1.7 billion. Following this news, the company’s cybersecurity firm’s stock prices increased during after hours.
Palo Alto Networks’ shares have increased by approximately 20% year-to-date, which is consistent with the overall upward trend of tech equities. The cybersecurity industry performed better than other technology stocks in the previous year, as the demand for network security increased due to rising geopolitical tensions.
Analysts Coverage Change:
- Stifel Nicolaus maintains a “Buy” rating for (PANW:NSD) and raises the price target to $225 from $215.
- BMO Capital Markets maintains an “Outperform” rating and raises the price target to $228 from $220.
- Deutsche Bank maintains a “Buy” rating and raises the price target to $210 from $165.
- KeyBanc Capital Markets maintains an “Overweight” rating and raises the price target to $230 from $210.
- Jefferies & Company maintains a “Buy” rating and raises the price target to $215 from $195.
- J.P. Morgan Chase & Co maintains an “Overweight” rating and raises the price target to $225 from $195.
- JMP Securities maintains a “Market Outperform” rating and raises the price target to $230 from $208.
- Barclays maintains an “Overweight” rating and raises the price target to $227 from $215.
- Wolfe Research maintains an “Outperform” rating and raises the price target to $210 from $170.
- Mizuho Securities maintains a “Buy” rating and raises the price target to $235 from $220.
Positive Fundamentals of Palo Alto Networks Inc:
Palo Alto Networks Inc. is a large company in its sector with a high market capitalization, indicating greater stability. The stock has demonstrated superior risk-adjusted returns compared to its peers over a hold period of at least 12 months and has positive total and free cash flow in the most recent four quarters. These factors suggest that the stock may be a favorable investment option.
Negative Fundamentals of Palo Alto Networks Inc:
Investors should be cautious about investing in Palo Alto Networks Inc. stock for the following reasons:
- High volatility: The total returns for the company are volatile and have been above median for its sector over the past 5 years. Investors need to have a high risk tolerance to invest in such a stock.
- Overpriced compared to book value: The stock is trading at a high price compared to its peers median on a price to book value basis.
- Overpriced on cashflow basis: The stock is trading at a high price compared to its peers on a price to cash flow basis. It is priced above the median for its sectors.
- Overpriced on free cash flow basis: The stock is trading at a high price compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Investors should be cautious if considering buying the stock.
FA Score (Fundamental Analysis):
The fundamental analysis of Palo Alto Networks is “Neutral” with a FA score of 5 out of 10, where 0 is very bearish and 10 is very bullish.
About Palo Alto Networks Inc:
Palo Alto Networks is a cybersecurity company that provides firewall appliances and software, as well as a security management solution for controlling them on a customer’s network or in public/private cloud environments. They also offer subscription services covering various areas of threat prevention and protection, including DNS security, Internet of Things security, and data loss prevention. Additionally, the company provides professional services, education services, and support services to medium to large enterprises, service providers, and government entities across various industries. Palo Alto Networks was incorporated in 2005 and is headquartered in Santa Clara, California.
