Palo Alto Networks price target raised to $350 from $285 at Jefferies

Jefferies raised the firm’s price target on Palo Alto Networks to $350 from $285 and keeps a Buy rating on the shares. The analyst expects 2024 to be another positive year for software, but says the group is likely see more measured returns versus 2023. The first half of 2024 could be challenging given the Q4 rally and seasonal Q1 “black ice,” the analyst tells investors. The firm would position selectively for a better second half of the year, driven by fundamental acceleration, increased adoption of artificial intelligence, lower interest rates, “still reasonable” valuations, and potential acquisition pick-up. Investors should overweight software in 2024 but should expect more moderate returns, says Jefferies.