Palo Alto Networks price target raised to $348 from $336 at Argus

Argus raised the firm’s price target on Palo Alto Networks to $348 from $336 and keeps a Buy rating on the shares. The company’s new go-to-market strategy necessitated it lowering FY24 revenue and billings guidance, but the firm disagrees with the market that punished the stock as there was no deterioration in the demand environment for cybersecurity software or a competitive or execution issue, the analyst tells investors in a research note. Argus adds that if anything, cybersecurity environment is “getting more toxic” as generative AI may be used for both good and ill, and Palo Alto continues to stand out from its sector peers with best-in-class technology and also a rapid product innovation cycle.