Key Takeaways From Palo Alto Networks Analyst Ratings

During the last three months, 21 analysts shared their evaluations of Palo Alto Networks PANW, revealing diverse outlooks from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Palo Alto Networks, presenting an average target of $294.86, a high estimate of $350.00, and a low estimate of $260.00. Witnessing a positive shift, the current average has risen by 6.36% from the previous average price target of $277.22.

Analyzing Analyst Ratings: A Detailed Breakdown

The analysis of recent analyst actions sheds light on the perception of Palo Alto Networks by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Palo Alto Networks. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Palo Alto Networks compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Palo Alto Networks's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Palo Alto Networks's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Palo Alto Networks analyst ratings.

Unveiling the Story Behind Palo Alto Networks

Palo Alto Networks is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, and security operations. The California-based firm has more than 85,000 customers across the world, including more than three fourths of the Global 2000.

Breaking Down Palo Alto Networks's Financial Performance

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Palo Alto Networks's revenue growth over a period of 3 months has been noteworthy. As of 31 October, 2023, the company achieved a revenue growth rate of approximately 20.13%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: Palo Alto Networks's net margin excels beyond industry benchmarks, reaching 10.34%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Palo Alto Networks's ROE excels beyond industry benchmarks, reaching 9.91%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Palo Alto Networks's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.33%, the company showcases efficient use of assets and strong financial health.

Debt Management: Palo Alto Networks's debt-to-equity ratio is below the industry average at 1.02, reflecting a lower dependency on debt financing and a more conservative financial approach.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.