Palo Alto Networks Inc (PANW) shares are seeing a surge in trading activity, up 0.8% on Thursday, adding to the stock’s impressive gains of almost 9% over the past week. This bullish momentum is fueled by positive analyst sentiment in the lead-up to the company’s upcoming earnings report.
Investors are anticipating Palo Alto’s fourth-quarter financial results, set to be released after the market closes on Monday. Analysts are expecting the cybersecurity giant to report earnings of $1.41 per share on revenue of $2.162 billion. Given Palo Alto’s consistent track record of exceeding expectations, this forecast suggests a strong performance. In fact, the company has met or surpassed analyst estimates in a remarkable 16 out of the last 17 quarters, according to data from Benzinga Pro.
The company’s previous quarter showcased impressive results, with revenue reaching $1.985 billion against estimates of $1.967 billion and earnings per share coming in at $1.32, exceeding estimates of $1.25. Palo Alto’s CFO, Dipak Golechha, highlighted the company’s disciplined execution and continued investments in go-to-market strategies and innovation, contributing to the consistent, profitable growth observed in the third quarter.
Several analysts have recently expressed their confidence in Palo Alto’s future by raising price targets ahead of the earnings announcement. Citigroup’s Fatima Boolani maintained a Buy rating and increased the price target from $345 to $385. Similarly, Scotiabank’s Patrick Colville retained a Sector Outperform rating while raising the price target from $337 to $385.
WestPark Capital reiterated its Hold rating, while UBS analyst Roger Boyd maintained a Neutral rating but increased the price target from $300 to $345. Stifel’s Adam Borg maintained a Buy rating and elevated the price target from $330 to $360. Finally, Barclays analyst Saket Kalia kept an Overweight rating and raised the price target from $325 to $350.
With the current trading price at $344.70, representing a 1.41% increase, Palo Alto Networks shares are riding high on a wave of optimistic sentiment. The company’s history of strong performance, coupled with the bullish forecasts from analysts, suggests a positive outlook for the cybersecurity giant.
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