Palo Alto Networks downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank analyst Brad Zelnick last night downgraded Palo Alto Networks (PANW) to Hold from Buy with a price target of $190, down from $207. The firm says 2025 is likely to be a tough year for cyber consolidators. It downgrades Palo Alto against a view of customer preference tilting towards “best-of-breed over best-of-suite within cyber.” Though not a call on the long-term quality of the business, 2025 will represent a tougher operating environment for Palo Alto as one of the leading cyber platforms against “lofty investor expectations that seemingly embed persistent consolidation tailwinds,” the analyst tells investors in a research note.