Palo Alto Networks' stock has hit a 20-day low amid a broader market decline, with the Nasdaq-100 down 0.48% and the S&P 500 down 0.05%.
The company has finalized its acquisition of Chronosphere to enhance data visibility and security in the AI era. This acquisition is expected to improve operational efficiency and reduce potential losses through the integration of Chronosphere's cloud-native observability platform with Cortex AgentiX™, allowing customers to automatically discover and fix security issues. Despite a recent decline in stock price, analysts remain optimistic about Palo Alto Networks' future growth potential, driven by this strategic acquisition and its ongoing investments in AI applications.
The acquisition of Chronosphere positions Palo Alto Networks to strengthen its competitive edge in the cybersecurity market, particularly as demand for advanced data security solutions continues to rise in the AI landscape.
Wall Street analysts forecast PANW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PANW is 232.49 USD with a low forecast of 157.00 USD and a high forecast of 265.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
Wall Street analysts forecast PANW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PANW is 232.49 USD with a low forecast of 157.00 USD and a high forecast of 265.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Buy
5 Hold
1 Sell
Strong Buy
Current: 183.740
Low
157.00
Averages
232.49
High
265.00
Current: 183.740
Low
157.00
Averages
232.49
High
265.00
Guggenheim
John DiFucci
Sell -> Neutral
upgrade
2026-01-05
Reason
Guggenheim
John DiFucci
Price Target
AI Analysis
2026-01-05
upgrade
Sell -> Neutral
Reason
Guggenheim analyst John DiFucci late Friday upgraded Palo Alto Networks to Neutral from Sell without a price target. The stock has significantly underperformed the major indices, making it more difficult to make money shorting Palo Alto at this time, the analyst tells investors in a research note. The firm believes Palo Alto Networks should continue to benefit from the narrative as the largest pure-play vendor in the security space. The sector is "somewhat insulated, if not boosted by the threat of AI," contends Guggenheim.
Piper Sandler
Overweight
maintain
$230 -> $265
2026-01-05
Reason
Piper Sandler
Price Target
$230 -> $265
2026-01-05
maintain
Overweight
Reason
Piper Sandler raised the firm's price target on Palo Alto Networks to $265 from $230 and keeps an Overweight rating on the shares. The firm says 2025 proved to be a tough year for its Security & Infrastructure Software coverage, with the average name showing negative performance and only four names outperforming the NASDAQ. Piper is cautiously optimistic for a better year in 2026, with many names entering the year at interesting valuation levels setup well to be longer-term GenAI winners, despite monetization at the software layer not yet occurring at scale.
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Guggenheim
Sell -> Neutral
upgrade
2026-01-02
Reason
Guggenheim
Price Target
2026-01-02
upgrade
Sell -> Neutral
Reason
Guggenheim upgraded Palo Alto Networks to Neutral from Sell.
Morgan Stanley
Overweight
maintain
$228 -> $245
2025-12-18
Reason
Morgan Stanley
Price Target
$228 -> $245
2025-12-18
maintain
Overweight
Reason
Morgan Stanley raised the firm's price target on Palo Alto Networks to $245 from $228 and keeps an Overweight rating on the shares. Cybersecurity names were largely flat on the year, with platforms being up about 30%, on average, and the rest of the space being down about 12%, the analyst tells investors. The firm continues to see platforms as the "easiest way to play cyber" and expects them to continue to outperform, but believes other opportunities remain, the analyst tells investors in a year-ahead note for the group.
About PANW
Palo Alto Networks, Inc. provides comprehensive artificial intelligence (AI)-powered security solutions across network, cloud, security operations and AI. The Company focuses on four areas: Network Security, Cloud Security, Security Operations and Threat Intelligence and Advisory Services (Unit 42). Its network security platform comprises ML-powered firewalls, AI Runtime Security, and a Secure Access Service Edge (SASE) framework, which includes Prisma Access, Prisma SD-WAN, and Prisma Access Browser to secure remote workforces and branch offices. Its Cloud security is delivered via Prisma Cloud, a Code to Cloud platform that protects applications, data, GenAI environments, and the cloud-native stack throughout the development lifecycle. Its Unit 42 division provides intelligence-led consulting, incident response, managed detection and response, and threat hunting services. Its Prisma AIRS is an AI security platform which secures applications, agents, models and data.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
