Palo Alto Networks (Palo Alto Networks (PANW)) shares are taking a hit Wednesday, falling alongside the broader cybersecurity sector after peer Zscaler (Zscaler (ZS)) issued a softer-than-expected outlook for its fiscal fourth quarter.

Zscaler's earnings report wasn't all bad — it actually beat third-quarter expectations with revenue of $850.48 million and adjusted earnings per share of $1.08. But the forward guidance spooked investors: Zscaler forecast Q4 revenue of $875 million to $878 million, below the consensus estimate of $878.53 million. Management blamed recent sales leadership transitions for the shortfall, and the market took it as a sign of broader weakness, dragging down cybersecurity stocks across the board.

But not everyone is buying the panic. Wedbush Securities analyst Dan Ives, in a note Wednesday, dismissed fears of a sector-wide slowdown. "We view the ZS guidance shortfall after the bell as company-specific execution issues and not an indicator of broader sector issues," Ives wrote. He maintained an Outperform rating on Palo Alto Networks and aggressively raised his price target from $225 to $300, using a sum-of-the-parts valuation methodology.

Ives is particularly bullish on Palo Alto's "platformization story" — the company's strategy of offering an integrated suite of security solutions. A key piece of that puzzle is the recent acquisition of CyberArk, now rebranded as Idira. According to Ives, Idira makes Palo Alto the only vendor that can provide unified coverage across network, cloud, and identity security at scale. And the sales team is already leaning into it: channel checks show that roughly 75% of recent deals involve cross-selling packages that include Idira.

With Palo Alto Networks set to report its third-quarter earnings on June 2, Ives thinks the Street's revenue estimate of $2.94 billion is beatable, citing strong momentum heading into the print. Analysts are also forecasting earnings per share of $0.72. For context, in the second quarter, Palo Alto posted EPS of $1.03, crushing the consensus estimate of $0.76, while revenue of $2.59 billion edged past expectations of $2.58 billion. The company has now beaten EPS estimates for eight straight quarters.

As of Wednesday's publication, Palo Alto Networks shares were down 2.83% at $249.48, still within striking distance of their 52-week high of $261.41. For investors with a longer time horizon, the dip might look like an entry point — especially if Ives and his $300 price target are right.