Palo Alto Networks Upgraded by Piper Sandler, Deutsche Bank with Price Targets of $225 and $220 Ahead of Q4 Earnings

Palo Alto Networks Inc. (PANW) has received multiple analyst upgrades ahead of its fourth-quarter earnings report. Piper Sandler raised its rating on PANW to Overweight from Neutral and increased the price target to $225 from $200, citing the company's early platformization success, growing traction of its XSIAM platform, consistent cash flow, and the strategic $25 billion CyberArk acquisition. Deutsche Bank also upgraded PANW to Buy from Hold, raising its price target to $220 from $200, highlighting strong business fundamentals, leadership quality, and the potential benefits of the CyberArk deal. Wall Street consensus reflects a Strong Buy rating with an estimated 23.3% upside potential. Shares of PANW traded up to $175.40 following these upgrades. Additionally, analysts recommend buying security software stocks, including identity security firms, following positive survey feedback and JPMorgan's advice to buy the dip in this sector.