Morgan Stanley, Goldman Increase Palo Alto Networks Price Targets to $245 and $240
Morgan Stanley raised its price target for Palo Alto Networks to $245 from $228 and Goldman Sachs upped its objective to $240 from $236, boosting the consensus target to $226.20. In Q3, Palo Alto Networks generated $2.47 billion revenue (+15.7% YoY) and $0.93 EPS, beating estimates by $0.04.
1. Technical Outlook Signals Bullish Potential
Palo Alto Networks is on track to finish 2025 up 2.9%, but has been unable to clear the key resistance around the high-hundreds mark. The stock sits within 3% of its 12-month moving average after closing above it for five consecutive months. According to Schaeffer’s Senior Quantitative Analyst Rocky White, this signal appeared seven times in the past two decades. One month later, the security was higher 71% of the time, averaging an 11.2% gain; after three months, it posted positive returns every time with an average advance of 26.8%. The company’s Schaeffer’s Volatility Index of 26% ranks in the low 1st percentile of readings, reflecting historically subdued volatility expectations among options traders.
2. Institutional Stake Adjustments
During the third quarter, Abacus FCF Advisors LLC reduced its position by 8.3%, selling 7,708 shares and ending the period with 84,663 shares, representing 2.3% of its total holdings and valued at $17.24 million. Brighton Jones LLC increased its stake by 147.7%, adding 4,031 shares to reach 6,761 shares valued at $1.23 million, while Bison Wealth LLC boosted its position by 169.1% to 5,212 shares worth $948,000. Overall, hedge funds and other institutions now own 79.82% of the company’s outstanding shares.
3. Recent Quarterly Results and Guidance
In the latest quarter, Palo Alto Networks reported adjusted earnings per share of $0.93, beating consensus estimates of $0.89 by $0.04, on revenue of $2.47 billion versus forecasts of $2.46 billion. Revenue grew 15.7% year-over-year, while return on equity reached 17.05% and net margin stood at 11.69%. Analysts project full-year EPS of 1.76, indicating continued top-line expansion driven by ongoing demand for cybersecurity subscription services.
4. Analyst Sentiment and Insider Activity
Thirty-one research firms maintain a Buy rating on Palo Alto Networks shares, nine hold at Neutral and two recommend Sell, resulting in a consensus view of Moderate Buy and an average price target of 226.20. Insider transactions over the last quarter include the sale of 381,922 shares valued at $78.9 million; insiders currently hold 1.40% of the outstanding shares, underlining selective personal liquidity activity ahead of the 2026 outlook.