Investment Thesis: Palo Alto Networks (PANW) is positioned as a long-term leader in integrated, AI-driven cybersecurity, leveraging its platform strategy, strong financial momentum, and the transformative $25B CyberArk acquisition to address growing enterprise demand for end-to-end security solutions. The company continues to deliver double-digit revenue growth, margin expansion, and leadership in AI security, but trades at a steep premium with a P/E of 43x and EV/EBITDA of 93.5x, leaving little margin for error. While analyst sentiment is generally bullish, concerns remain over integration risks, tight liquidity, and high valuation, with the stock experiencing post-deal volatility. A trade setup around $170–$178 with a $144 stop-loss and targets near $200–$225 offers a balanced risk-reward for investors confident in PANW’s execution amidst near-term uncertainty.
Trade Plan:
- Entry: $170-$178
- Stop-loss: $144
- Trim Zone: $200-$210 (partial)
- Target: $220-225
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Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.