Analysts adjust Palo Alto Networks stock price target ahead of earnings

Three hours is all they need.

In roughly the time it takes to fly from New York to Miami, hackers can transfer a company's most valuable data and do all kinds of damage.

Related: Analysts reboot Palo Alto Networks stock price target after earnings

"Bad actors can get in and out of companies' infrastructure in about three hours now," Nikesh Arora, chairman and CEO of Palo Alto Networks ( PANW ) , said during Bank of America Securities' 2 024 Global Technology Conference on June 4. "It used to be days, but now it's down to three hours."

"I can get in and out of a company, exfiltrate terabytes of data. You have to be able to find me in there and stop me from reading data in three hours," he said. "You can’t do it."

Cyber attacks come at heavy price. Worldwide, cybercrime is predicted to cost the world $9.5 trillion this year, according to the research firm Cybersecurity Ventures , and reach $10,5 trillion in 2025.

Palo Alto Networks CEO: 'We want to the security platform'

Those costs include the destruction of data, lost productivity, theft of intellectual property, reputational harm, legal costs, and, potentially, regulatory fines.

A survey of 3,069 risk management professionals from 92 countries and territories, analyzed and published in the 2024 Allianz Risk Barometer , named cyber incidents the top global risk.

Related: Analyst reboots Palo Alto Networks stock price target ahead of earnings

“Cyber is the cause of business interruption that companies fear most, while cyber security resilience is their most concerning environmental, social, and governance (ESG) risk issue,” the report said.

“Cyber threats are constantly evolving as hackers and criminals gain access to new technologies or find new ways to exploit old vulnerabilities.”

And hackers are using artificial-intelligence-powered language models to increase the speed and scope of ransomware attacks, as well as create new malware and produce highly convincing phishing emails and deep fakes. Such attacks are likely to proliferate during 2024, Allianz said.

Palo Alto Networks has been a big proponent of cybersecurity platformization of its products instead of point solutions, which Arora said "means that you don't have to stitch multiple products to derive the solution that you want."

"Thirty years ago, you had so many disparate systems, which are now one platform," he said during the BofA conference. "Think about your HR systems. You used to have fifteen of those; they're down to one called Workday. So it is feasible."

"Industry has proven that there are platforms that can be created, and our aspiration is to be the platform of security," Arora said.

Palo Alto Networks is scheduled to report fourth-quarter earnings on Aug. 19.

In May, Palo Alto Networks reported third-quarter earnings of $1.32 a share, up 20% from a year earlier and beating analysts’ consensus forecast for $1.25 a share.

Revenue totaled $2 billion, up 15% from a year earlier and coming in ahead of Wall Street’s call for $1.97 billion.

TheStreet Pro's Bruce Kamich wrote on Aug, 12 that "the charts of PANW are mixed — some bullish and some bearish."

Kamich has been analyzing stocks professionally using technical analysis for 50 years.

"In this current unsettled environment for the broader market averages, I would stand aside for now and take no position," he said. "Traders who are long PANW should use a sell stop at $280."

Analyst: company 'making right strategic moods'

Shares of Palo Alto Networks were up 1% to $343.37 at last check and up nearly 57% from a year ago.

Analysts have been adjusting their price targets for the company ahead of the earnings report.

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On Aug. 15, JPMorgan analyst Brian Essex raised the firm's price target on Palo Alto Networks to $365 from $340 and kept an overweight rating on the shares.

The analyst cited Palo Alto's underlying market share gains and recent peer multiple appreciation for the target increase.

Strong demand could drive fourth-quarter upside as the company straddles the transition to remaining performance obligation for guidance, Essex said.

Scotiabank raised the firm's price target on Palo Alto Networks to $385 from $337 while keeping an outperform rating on the shares.

Based on the firm's analysis ahead of the release of Palo Alto's quarterly results, Scotiabank believes there is a risk to Street Fiscal 2025 Billings. Still, the analyst tells investors that management should guide in line for free-cash-flow margin.

Scotiabank said it also believes the company is making the right strategic moves to accelerate consolidation with the company.

Barclays analyst Saket Kalia raised the firm's price target on Palo Alto Networks to $350 from $325 and kept an overweight rating on the shares ahead of the earnings report.

Kalia said the company could beat fiscal fourth-quarter billings and provide a revenue performance obligations guide instead of a billings guide for fiscal 2025.

The analyst said that he expects an RPO guide of high teens to 20% growth in fiscal 2025, implying low teens remaining performance obligations, or RPO. bookings growth.

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