10 AI Stocks on Market Radar

6. Palo Alto Networks, Inc. (NASDAQ:PANW)

Number of Hedge Fund Holders: 77

Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the 10 AI Stocks on Market Radar. On September 23, Citizens JMP analyst Trevor Walsh reiterated a Market Outperform rating on the stock with a $212.00 price target.

While the stock is currently trading at a slight premium relative to its peer group, analysts think that the valuation is justified since the company is extending efforts to expand its cybersecurity platform and capture a wide portion of the total addressable cybersecurity market.

“We maintain our Market Outperform rating and $212 price target on Palo Alto Networks, Inc. Palo Alto Networks currently trades at 37.0x CY26E EV/FCF multiple, while our $212 price target implies 37.7x CY26E EV/FCF. This represents a slight premium to the mean multiple of 31.7x CY26E EV/FCF for the peer group. We believe this valuation is warranted given the company’s ambitious platform strategy and intelligent product expansion efforts to consolidate a wide swath of the total addressable cybersecurity market.”

Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity.