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Evercore Maintains Bullish Stance on Palo Alto (PANW) as Investors Look Past CyberArk Deal

Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the AI Stocks Investors Are Watching Right Now. On August 12, Evercore ISI analyst Peter Levine reiterated an Outperform rating on the stock with a $220.00 price target.

According to the firm, investors are expected to focus primarily on Palo Alto Networks’ initial fiscal year 2026 guidance. There is going to be less emphasis on the pending Cyberark acquisition, which is unlikely to receive significant commentary at this stage.

Evercore ISI also expects FY26 guidance to come in slightly below Wall Street estimates. However, this has already been signaled and won’t be surprising. Investor sentiment remains muted, but the firm holds its optimistic outlook toward the stock.

“In terms of expectations for the FY26 guide, we took down our FY rev from 13.7% to 12.3%. With PANW tempering expectations over the course of the quarter, a below-consensus FY26 guide would be in line with recent signaling/should not come as a surprise. In terms of the quarter, sentiment appears more subdued relative to prior quarters, reflecting the modest revenue and ARR guide upside observed so far in FY25. “

A financial analyst poring through documents and data, seeking an edge in the market.

“Recent investor conversations show low conviction and no clear bogey, as top-line beats have averaged just 1% in F1Q–F3Q. A 15% top-line print would likely suffice. We would expect product upside, supported by stronger product results from both CHKP & FTNT. From an NGS ARR lens, the bogey stands at ~32.5% y/y, or $500mn net new ARR, vs. the midpoint of the guide of +31.4% (+$460mn in net new). Our core L/T thesis on PANW remains intact. With the stock down ~18% since the deal announcement, we believe that, for investors with a multi-quarter view, we see meaningful upside from these levels, and our initial work suggests the strategic rationale for CYBR will ultimately prove sound.”

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

While we acknowledge the risk and potential of PANW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PANW  and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Must-Watch AI Stocks on Wall Street and 10 AI Stocks Making Headlines This Week.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 140 Metas
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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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