Palo Alto Networks (PANW): Citizens JMP Lifts Price Target to $250 Ahead of Earnings

Palo Alto Networks, Inc. (NASDAQ:PANW) is a Must-Watch AI Stocks on Wall Street. On October 27, Citizens JMP analyst Trevor Walsh raised the firm’s price target on the stock to $250 from $212 and kept an Outperform rating on the shares.

Walsh believes that PANW is a key name to watch ahead of earnings, particularly because of the under-recognized positive reaction it has received to its CyberArk acquisition.

The new price target represents a modest premium to the peer group mean of 33.2x. This premium valuation, the firm believes, is justified given PANW’s “ambitious platform strategy and intelligent product expansion efforts.”

These efforts are designed to capture a larger portion of the total addressable cybersecurity market.

“Palo Alto Networks currently trades at 32.9x CY26E EV/FCF multiple, while our revised $250 price target implies 38.0x CY26E EV/FCF (our prior $212 price target assumed a 32.1x CY26E EV/FCF multiple). This represents a modest premium to the mean multiple of 33.2x 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 cyber security market.”

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

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