The average rating of 57 analysts is "buy"; the median price target of $380 is up from $335 a month ago and $232.50 on June 1.
Shares slide ahead of quarterly earnings
Shares of Palo Alto Networks PANW.O were sliding 6.1% on Tuesday to $358.82 heading into quarterly earnings due after the bell, with investors looking for updates on AI-driven security spending.
The seller of cybersecurity solutions is seen posting fiscal Q4 revenue growth of 32% year over year to $3.35 billion and adjusted EPS of $0.98, compared with $0.95 a year ago, according to LSEG data.
AI cybersecurity demand and valuation in focus
Santa Clara, California-based PANW in June boosted its annual revenue and profit forecasts on strong AI cybersecurity demand as enterprises increased spending amid a rising threat landscape.
Even with the fall, PANW has surged about 95% year to date, far outperforming the Nasdaq's .IXIC about 12.5% advance; the stock was just about 10% below its Aug. 13 record intraday high of $398.88.
The stock recently traded at 90 times forward earnings versus its five-year average of 53, suggesting a rich valuation.
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