StoneX reiterated a Buy rating on Palo Alto Networks (NASDAQ: PANW) with a $400 price target, the firm said in a note dated Sept. 2.
The upgrade comes after Palo Alto Networks reported fourth-quarter fiscal 2027 results for the period ending in July that exceeded FactSet consensus expectations across the top and bottom lines. Revenue came in 1.8% above estimates, operating income outpaced forecasts by 3.0%, and earnings per share beat by 5.1%.
The results have drawn attention from multiple Wall Street analysts. Piper Sandler raised its price target to $410, while RBC Capital increased its target to $475 and reaffirmed a free cash flow margin target of 40% for fiscal year 2028. RBC also noted the company's current free cash flow margin of 36.8%.
BMO Capital maintained an Outperform rating, JPMorgan kept Overweight, and Cantor Fitzgerald reiterated Overweight on the shares.
Palo Alto Networks trades at a market capitalization of approximately $269.5 billion with a P/E ratio of 288.73. The stock has climbed 96% year-to-date, supported by a rule-of-71.3 growth algorithm and year-over-year revenue growth of 34.5%.
Analysts highlighted several strategic initiatives driving the outlook, including AI security offerings, the XSIAM platform, platformization efforts, the CyberArk integration, and Chronosphere Observability. Piper Sandler specifically cited Next-Generation Security annual recurring revenue growth, M&A synergies, and integration of acquired businesses as key performance factors.
