Palo Alto Networks Inc. (PANW) is finally getting customers to think bigger. After years of pushing its platform story, the cybersecurity company appears to be gaining real momentum with multi-product deals, according to fresh channel checks from BTIG.
Analyst Gray Powell maintained a Buy rating and $248 price target on the stock, noting that demand for Palo Alto's solutions rose sequentially during the fiscal first quarter. More importantly, the company seems to have figured out how to actually sell the platform, not just talk about it.
"Five of our contacts highlighted that PANW is doing a better job selling the platform and stated that momentum with multi product deals is improving," Powell wrote. That's the standout finding compared to checks conducted six months ago.
The numbers look solid too. Powell believes Palo Alto Networks can hit the high end of its NGS ARR (next-generation security annual recurring revenue) target for fiscal 2026, with sustained growth potential of 12-15%.
There's also an intriguing subplot involving CyberArk Software Ltd (CYBR). Powell noted that insights on Palo Alto's ability to upsell CyberArk into its existing customer base "was encouraging," suggesting the integration is already showing promise.
The stock was down 0.65% at $203.91 at the time of publication Monday. With a market cap of $138.02 billion and a P/E ratio of 128.28, investors are clearly betting on continued growth in a sector that's only becoming more critical. The stock's position near its 52-week high reflects confidence that cybersecurity spending isn't slowing down anytime soon.
