On Tuesday, BMO Capital Markets updated their outlook on Palo Alto Networks (NASDAQ:PANW) shares, raising the price target to $334.00 from $327.00 while maintaining an Outperform rating. This adjustment reflects a potential upside of approximately 13% from the stock's after-hours trading price of around $296.
The firm's analyst highlighted the company's solid Remaining Performance Obligations (RPO) and its alignment with fiscal year 2025 estimates. Although an increase in billings was anticipated by investors, the analyst noted that Palo Alto Networks is on track to meet those long-term estimates without reporting significant billing upside.
The recent partnership between Palo Alto Networks and IBM (NYSE:IBM) was also acknowledged as a positive development for both companies. This collaboration was discussed in the context of the IBM Think 2024 conference, which the analyst is attending.
The new price target suggests confidence in Palo Alto Networks' performance and future prospects. The Outperform rating indicates that BMO Capital Markets expects the stock to perform better than the average return of the stocks the firm covers.
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