Brokerage Wedbush raises its price target on cybersecurity company Palo Alto Networks PANW.O to $400 from $340.
The new price target represents about 18% upside to the stock's last close.
Wedbush cites PANW's ability to tap into new, high-growth markets by leveraging its strong balance sheet and steady M&A integrations.
Brokerage sees stronger positioning in security operations
Wedbush believes PANW's position as a security operations center rather than a platform will better position the firm to win more deals moving forward, as it combines human expertise with custom processes instead of relying on automated tooling alone.
The company has multiple products reaching new all-time highs for growth in its cloud business, including Prisma AIRS, Palo Alto's AI Security platform covering AI runtime security, the brokerage said.
44 of 56 brokerages rate the stock "buy" or higher, 11 rate it "hold" and one rates it "sell"; their median price target is $410, according to data compiled by LSEG.
Up to the last close, the stock had risen about 84% this year.
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