BTIG Stays Positive on Palo Alto Networks (PANW) as Channel Checks Improve

Palo Alto Networks (NASDAQ:PANW) is one of the AI Stocks to Watch. Despite valuation pressures weighing in on software stocks, Palo Alto is gaining renewed analyst attention from Wall Street. On February 12, BTIG analyst Gray Powell lowered the price target on Palo Alto Networks (NASDAQ: PANW) to $200.00 (from $248.00) while maintaining a “Buy” rating.

The firm spoke with eleven contacts on broader cyber security trends, picking up multiple data points for PANW. Its particular focus was on insights from five large channel partners with a combined view on $1.3 billion in annual Palo Alto Networks sales.

BTIG noted that the tone of its checks reveal slight improvements from the last quarter. It also cited improved activity with Palo Alto Networks partners in both December and January, with insights regarding Prisma SASE, software firewalls, XSIAM and Prisma AIRS products standing out positively.

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The firm further noted increasing confidence in PANW’s ability to exceed Street estimates in its fiscal second quarter of 2026.

And we left our work with a higher degree of confidence in PANW’s ability to edge out Street estimates in FQ2’26 and hit the high end of NGA ARR targets for FY26 (excluding M&A). We reduced our PT to $200/share from $248 previously due to multiple compression across software but reiterate our Buy rating.

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

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Disclosure: None. This article is originally published at Insider Monkey.