1. Palo Alto Networks Inc. (NASDAQ:PANW)
5-Year Sales Growth: 22.03%
Number of Hedge Fund Holders: 85
Palo Alto Networks Inc. (NASDAQ:PANW) is one of the best high-growth cybersecurity stocks to buy. On February 10, Stifel trimmed its price target on Palo Alto Networks (NASDAQ:PANW) from $225 to $200 while maintaining a Buy rating ahead of the company’s fiscal Q2 2026 earnings report scheduled for February 17.
The adjustment followed discussions with five large cybersecurity resellers that together manage about $1.9 billion in Palo Alto-related spending. Of those partners, two reported stronger-than-expected performance, two described results as roughly in line with expectations, and one indicated softer trends.
Despite the varied reseller feedback, Stifel expects the company to maintain steady organic growth, with additional upside potentially coming from the Chronosphere deal and a possible CyberArk acquisition.
On February 2, Jefferies reiterated a Buy rating on Palo Alto Networks and a $250 price target. The positive stance underscores the research firm’s confidence about the company’s long-term prospects as it nears the completion of the CyberArk Acquisition.
The deal is expected to bolster Palo Alto Networks’ revenue, as CyberArk posted solid results, including 20% year-over-year growth in net new annual recurring revenue in the fourth quarter.
The $25 billion acquisition comes as the company enters the identity market, hitting an inflection point. Chief Executive Officer Nikesh Arora expects CyberArk to strengthen Palo Alto Networks’ prospects for disrupting the market and creating a much-needed platform.
Palo Alto Networks (NASDAQ:PANW) is a leading cybersecurity firm serving over 70,000 organizations in more than 150 countries. Once known mainly for its next‑generation firewalls, it now delivers AI-driven security across cloud, network, and mobile environments.
While we acknowledge the potential of PANW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PANW and that has 100x upside potential, check out our report about this cheapest AI stock.
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