Global cybersecurity company Palo Alto Networks (PANW) stock is rising Monday alongside two catalysts. The first is a new price target from five-star Wolfe Research analyst Alex Zukin. He increased the firm’s price target for PANW stock from $200 to $220 per share while maintaining an Outperform rating. This represents a potential 11.93% upside for the shares.
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The second catalyst helping out PANW stock today is a stock split. The company announced a two-for-one stock split alongside its most recent earnings report. That went into effect after markets closed on Friday. As such, the shares start trading on a split-adjusted basis today.
What This Means for PANW Stock
The new price target is a boon to Palo Alto Networks as it increases investor confidence in its shares. In his letter to clients, Zukin noted that now is not only “an amazing time to not only be alive, but also cover software stocks.” He highlights improving fundamentals, a relaxed regulatory environment, artificial intelligence (AI) tailwinds, and strong capital markets as reasons for this statement.
The stock split also reduces the price of PANW stock without affecting the company’s market capitalization. With that, Palo Alto Networks lowers the barrier to invest in its shares. That could attract a new group of shareholders previously unwilling to spend almost $400 per share on its stock, which would be a boon to the shares.
Is PANW Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Palo Alto Networks is Strong Buy based on 32 Buy, four Hold, and one Sell ratings over the last three months. With that comes an average price target of $212.30, a high of $232.20, and a low of $145.50. This represents a potential 8.01% upside for PANW shares.
