Stifel Raises Palo Alto's Price Target to $275 Ahead of Q3 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 20 2026
0mins
Source: seekingalpha
- Positive Demand Trends: Analyst Adam Borg spoke with five Tier-1 cybersecurity VARs/SIs with a combined annual Palo spend of over $2 billion, revealing that three partners exceeded expectations in Palo's F3Q results, indicating strong market demand and platform opportunities.
- Acquisition and AI Positioning: Partners expressed positive sentiments regarding Palo's CyberArk acquisition and AI strategy, suggesting the company's competitiveness and growth potential in the cybersecurity sector, which is expected to support reaffirmation of FY26 guidance.
- Price Target Increase: Stifel raised Palo Alto's price target from $185 to $275 while reiterating a Buy rating, reflecting increased confidence in the company's future performance and enhanced market recognition.
- Positive Stock Reaction: Palo Alto shares rose nearly 3% in Wednesday's trading, indicating investor optimism ahead of the upcoming earnings report, further validating market confidence in its growth prospects.
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Analyst Views on PANW
Wall Street analysts forecast PANW stock price to fall
34 Analyst Rating
28 Buy
5 Hold
1 Sell
Strong Buy
Current: 256.750
Low
157.00
Averages
232.49
High
265.00
Current: 256.750
Low
157.00
Averages
232.49
High
265.00
About PANW
Palo Alto Networks, Inc. is a global artificial intelligence (AI) cybersecurity company, with a comprehensive portfolio of cybersecurity solutions and platforms across network, cloud, security operations, AI and Identity. Its network security platform includes Secure Access Service Edge (SASE), Next-Generation Firewalls, Cloud Delivered Security Services (CDSS), Prisma AIRS, and Strata Cloud Manager (SCM). It delivers security operations capabilities that unifies standalone Security Information and Event Management (SIEM) tools, endpoint security, security automation, cloud detection and response (CDR), as well as attack surface management (ASM) capabilities on its Cortex platform. It delivers comprehensive security across the cloud application development lifecycle through Cortex Cloud. Its Unit 42 brings together expertise across threat research, incident response, and security consulting to deliver intelligence-driven, response-ready outcomes that help customers reduce cyber risk.
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.
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- Decline in Mortgage Applications: US MBA mortgage applications fell by 8.5% for the week ending May 22, with the purchase mortgage sub-index down 0.4% and the refinancing sub-index plunging 18.1%, indicating the suppressive effect of high interest rates on the housing market.
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See More
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- Telecom Infrastructure Surge: Dycom Industries saw a stock increase of about 30% after raising its full-year outlook, projecting contract revenue between $7.38 billion and $7.65 billion, and enhancing its data center capabilities through the acquisition of National Technology Integrators.
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- Crude Oil Price Decline: Crude oil prices dropped over 4% to a five-week low amid optimism surrounding a US-Iran peace deal, which has lowered inflation expectations and pushed bond yields lower, with the 10-year T-note yield falling to a 1.5-week low of 4.45%.
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See More
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- Price Target Increases: Wedbush raised its price target for Palo Alto Networks from $225 to $300 and for CrowdStrike from $550 to $700, reflecting strong market confidence and future growth expectations for both companies.
- Acquisition Integration Advantage: Following the completion of the CyberArk acquisition, now rebranded as Idira, Palo Alto Networks positions itself as the only vendor offering unified coverage across network, cloud, and identity security, showcasing robust demand drivers in identity and AI security.
- CrowdStrike Milestones: FY26 marked a record year for CrowdStrike as it became the first pure-play cybersecurity vendor to cross several major milestones, further solidifying its status as the gold standard in cybersecurity, particularly in its critical role in AI security infrastructure.
See More
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- ZScaler Earnings Impact: ZScaler's fiscal Q3 results revealed sales guidance below expectations, leading to a 30% drop in its stock on Wednesday morning, raising concerns about the broader cybersecurity sector, particularly for Palo Alto Networks and CrowdStrike.
- Market Sensitivity: Palo Alto and CrowdStrike have seen gains of over 60% and 72% respectively since April, but both stocks fell nearly 4% and 3% following ZScaler's report, indicating investor caution regarding the cybersecurity industry's outlook.
- Analyst Support: Wedbush analyst Dan Ives raised price targets for Palo Alto and CrowdStrike to $300 and $700, respectively, asserting that ZScaler's issues stem from company-specific execution problems rather than broader sector challenges, suggesting a positive long-term outlook for both companies.
- Investment Strategy Adjustment: Amid market volatility, Jim Cramer's investment team opted to take profits recently, particularly in CrowdStrike and Palo Alto after significant price increases, emphasizing the importance of timely portfolio adjustments to safeguard gains.
See More
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- Overall Market Performance: Since the April 16 meeting, the S&P 500 has risen by 6.7% and the Nasdaq by 10.6%, indicating a strong market rebound and significantly boosting investor confidence in equities.
- Outstanding Performance by Arm: Arm's stock surged 97.9% since our position initiation, driven by robust demand expectations for CPUs, particularly in the AI sector, with projected revenues of $20 billion this year greatly enhancing its royalty business.
- Cybersecurity Stocks Rebound: CrowdStrike and Palo Alto Networks saw increases of 60.6% and 53.8%, respectively, and despite ZScaler's negative impact, the market remains optimistic about their growth prospects, with price targets raised by multiple Wall Street firms.
- Underperformance of Meta and Home Depot: Meta's stock fell 9.5% primarily due to investor concerns over its spending on generative AI, while Home Depot dropped 7.9% as high mortgage rates dampened growth expectations, reflecting a lack of confidence in their future performance.
See More
