Jefferies analysts believe Palo Alto Networks Inc (NYSE:PANW, ETR:5AP) can achieve its revenue metrics when the cybersecurity solutions provider reports its fiscal first quarter 2026 financial results on November 19.
In a note to clients on Wednesday, the analysts raised their target price on Palo Alto to $250 per share from $235, although cautioned they’re not expecting a significant increase to the company’s already conservative fiscal 2026 guidance.
The analysts at Jefferies highlighted potential weakness in Palo Alto’s revenue from the US federal government, due to the shutdown, but believe the company’s sales are more insulated because of the capacity-based nature of its business.
They also pointed to Palo Alto’s key competitors, Fortinet and Check Point Software, which recently cited Secure Access Service Edge (SASE) as having good traction and being a key growth driver.
SASE provides security and connectivity to users, devices, and applications regardless of their location.
The analysts view this as being positive for Palo Alto as well.
They are also upbeat on Palo Alto’s subscription business given the strength in the company’s Q4 bookings of contracted future revenue yet to be realized, which the analysts believe should ultimately boost its subscription revenue growth.
Palo Alto Networks shares slipped 2.8% to $212.26 in midday trading on Wednesday.