Analyst Expectations For Palo Alto Networks's Future

23 analysts have expressed a variety of opinions on Palo Alto Networks PANW over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Palo Alto Networks and provided 12-month price targets. The average target is $353.04, accompanied by a high estimate of $385.00 and a low estimate of $285.00. Witnessing a positive shift, the current average has risen by 2.5% from the previous average price target of $344.43.

Exploring Analyst Ratings: An In-Depth Overview

The perception of Palo Alto Networks by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Palo Alto Networks. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Palo Alto Networks compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Palo Alto Networks's stock. This examination reveals shifts in analysts' expectations over time.

Capture valuable insights into Palo Alto Networks's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Palo Alto Networks analyst ratings.

All You Need to Know About 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.

Understanding the Numbers: Palo Alto Networks's Finances

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, Palo Alto Networks showcased positive performance, achieving a revenue growth rate of 15.33% as of 30 April, 2024. This reflects a substantial increase in the company's 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 14.05%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Palo Alto Networks's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 6.32%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Palo Alto Networks's ROA excels beyond industry benchmarks, reaching 1.54%. This signifies efficient management of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.34.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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