D.A. Davidson maintained its buy recommendation and $345 price target for Palo Alto Networks (NASDAQ: PANW) on Wednesday, citing the cybersecurity company’s strong recent performance and valuation.
The stock last traded at $339.05, roughly 1.8% below D.A. Davidson’s target. The firm trimmed its free cash flow margin estimate for the current fiscal year to 37.3% from 37.9%, though it remains above the 38% consensus. Analysts also noted options market signals pointing to a potential post-earnings move of 8.6%.
Palo Alto Networks’ shares have surged 84.5% over the past year and 127.5% over the last six months, outpacing broader tech benchmarks. The company is scheduled to report fourth-quarter fiscal 2026 results before the market opens on Sept. 1.
Peer price targets vary widely: BofA Securities set a $420 target, Benchmark at $400, JPMorgan at $384, and BTIG at $380. InvestingPro currently classifies PANW among the market’s most overvalued stocks, though its AI-driven ProPicks tool highlighted historical gains of 231.5% for Siemens Energy and 189% for Sandisk.
The analyst’s reiteration follows a period of elevated volatility, with options pricing indicating expectations for a significant move following the earnings release.
