Breaking Down Palo Alto Networks: 22 Analysts Share Their Views

Ratings for Palo Alto Networks PANW were provided by 22 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares 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 $312.82, a high estimate of $405.00, and a low estimate of $260.00. This upward trend is evident, with the current average reflecting a 9.76% increase from the previous average price target of $285.00.

Diving into Analyst Ratings: An In-Depth Exploration

An in-depth analysis of recent analyst actions unveils how financial experts perceive Palo Alto Networks. The following summary outlines 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: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Palo Alto Networks compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Palo Alto Networks's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Palo Alto Networks's market position. Stay informed and make well-judged decisions with the assistance of 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.

Positive Revenue Trend: Examining Palo Alto Networks's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 20.13% as of 31 October, 2023, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Palo Alto Networks's net margin is impressive, surpassing industry averages. With a net margin of 10.34%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Palo Alto Networks's ROE stands out, surpassing industry averages. With an impressive ROE of 9.91%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Palo Alto Networks's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.33% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.02.

The Basics of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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