Investment Trends: Identifying stocks that could multiply in value involves looking for companies that are reinvesting capital and generating increasing returns, with Palo Alto Networks showing promising trends in this area.
ROCE Analysis: Palo Alto Networks has a Return on Capital Employed (ROCE) of 8.0%, which is below the industry average but indicates improvement as the company transitions from losses to profitability.
Growth Potential: The company has significantly increased its capital utilization by 145% over the past five years, suggesting profitable reinvestment opportunities that could lead to substantial future growth.
Performance Overview: With a total return of 338% over the last five years, investor expectations are high for Palo Alto Networks, although there is one warning sign to consider in the investment process.
PANW
$186.73+Infinity%1D
Analyst Views on PANW
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 234.31 USD with a low forecast of 190.00 USD and a high forecast of 255.00 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 234.31 USD with a low forecast of 190.00 USD and a high forecast of 255.00 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.
30 Buy
4 Hold
0 Sell
Strong Buy
Current: 183.440
Low
190.00
Averages
234.31
High
255.00
Current: 183.440
Low
190.00
Averages
234.31
High
255.00
JPMorgan
NULL -> Overweight
initiated
$235
2025-12-17
New
Reason
JPMorgan
Price Target
$235
2025-12-17
New
initiated
NULL -> Overweight
Reason
JPMorgan reinstated coverage of Palo Alto Networks with an Overweight rating and $235 price target following a period of restriction. The firm says the company has the most comprehensive end-to-end platform of security software. Palo Alto is well positioned as a long-term share consolidator, the analyst tells investors in a research note.
Mizuho
Outperform
to
NULL
downgrade
$230 -> $220
2025-12-16
New
Reason
Mizuho
Price Target
$230 -> $220
2025-12-16
New
downgrade
Outperform
to
NULL
Reason
Mizuho lowered the firm's price target on Palo Alto Networks to $220 from $230 and keeps an Outperform rating on the shares. The firm adjusted targets in the software group as part of its 2026 outlook. The most important trends benefiting software vendors going forward are artificial intelligence, data modernization, DevOps, next-generation security, and electronic design automation, the analyst tells investors in a research note. Mizuho believes the low-teens median revenue growth forecast for 2026 "looks beatable," creating attractive risk/rewards into next year.
Jefferies
Buy
to
Hold
downgrade
$480
2025-11-30
Reason
Jefferies
Price Target
$480
2025-11-30
downgrade
Buy
to
Hold
Reason
Jefferies downgraded CyberArk (CYBR) to Hold from Buy with an unchanged price target of $480. The firm cites the pending takeover by Palo Alto Networks (PANW) for the downgrade.
HSBC
Hold -> Reduce
downgrade
$157
2025-11-21
Reason
HSBC
Price Target
$157
2025-11-21
downgrade
Hold -> Reduce
Reason
HSBC last night downgraded Palo Alto Networks to Reduce from Hold with an unchanged price target of $157. The firm views the company's fiscal Q1 the print as "sufficient, not transformational." The stock's risk/reward is turning negative with limited potential for upward estimate revisions in fiscal 2026 and 2027, the analyst tells investors in a research note. HSBC says that with Palo Alto's decelerating revenue growth, it sees an increased opportunity of a negative share re-rating.
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.
