Analyst Cuts Palo Alto Networks Target to $210 as Chronosphere Deal Closes
DA Davidson analyst Rudy Kessinger lowered Palo Alto Networks’ price target to $210 from $240 while maintaining a Buy rating ahead of its fiscal Q2 2026 earnings on Feb. 17. The company closed the Chronosphere acquisition before quarter-end and considers a CYBR acquisition to boost pro forma ARR and RPOs.
1. Upcoming Q2 Earnings
Palo Alto Networks will report fiscal second quarter 2026 earnings on February 17, with investors focused on NGS ARR growth and remaining performance obligations. Expectations are heightened by recent channel feedback suggesting upside to guidance.
2. Analyst Price Target Revision
DA Davidson’s Rudy Kessinger trimmed the stock’s price target to $210 from $240 but upheld a Buy rating, citing strong underlying demand and potential organic guidance increases. The revision reflects both near-term valuation and long-term growth prospects.
3. Acquisition Impact
The company finalized its Chronosphere acquisition before quarter-end and is evaluating the closing of the CYBR deal ahead of earnings. Both transactions are projected to drive higher combined ARR and RPOs on a pro forma basis.