Palo Alto Networks (PANW) Seen as Market Leader in Expanding Cybersecurity Market

Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the AI Stocks on Market Radar. On September 23, Citizens JMP analyst Trevor Walsh reiterated a Market Outperform rating on the stock with a $212.00 price target.

While the stock is currently trading at a slight premium relative to its peer group, analysts think that the valuation is justified since the company is extending efforts to expand its cybersecurity platform and capture a wide portion of the total addressable cybersecurity market.

“We maintain our Market Outperform rating and $212 price target on Palo Alto Networks, Inc. Palo Alto Networks currently trades at 37.0x CY26E EV/FCF multiple, while our $212 price target implies 37.7x CY26E EV/FCF. This represents a slight premium to the mean multiple of 31.7x CY26E EV/FCF for the peer group. We believe this valuation is warranted given the company’s ambitious platform strategy and intelligent product expansion efforts to consolidate a wide swath of the total addressable cybersecurity market.”

Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity.

While we acknowledge the potential of PANW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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