Analyst Expectations For Palo Alto Networks's Future

Palo Alto Networks PANW underwent analysis by 10 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $208.6, a high estimate of $235.00, and a low estimate of $156.00. Experiencing a 7.61% decline, the current average is now lower than the previous average price target of $225.79.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Palo Alto Networks among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Palo Alto Networks. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Palo Alto Networks compared to the broader market.
• Price Targets: Gaining insights, analysts provide 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 80,000 enterprise customers across the world, including more than three fourths of the Global 2000.

Understanding the Numbers: Palo Alto Networks's Finances

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 remarkable performance in 3M is evident. As of 31 January, 2025, the company achieved an impressive revenue growth rate of 14.29%. This signifies 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 is impressive, surpassing industry averages. With a net margin of 11.84%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Palo Alto Networks's ROE excels beyond industry benchmarks, reaching 4.35%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Palo Alto Networks's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.29% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Palo Alto Networks's debt-to-equity ratio is below the industry average at 0.14, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

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 will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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