Palo Alto Networks stock hits record high as analysts raise price targets

Shares of Palo Alto Networks Inc. PANW climbed more than 5% on Monday after analysts at BTIG and Wells Fargo raised their price targets on the cybersecurity company.

The analysts raised prices citing improving business momentum and continued demand for AI-driven security solutions.

The stock rose as much as 5.7% during morning trading to a record high of $368.17 before easing slightly.

Shares were last up about 2.7% at $357.50.

The gains come as investors continue to focus on artificial intelligence-related cybersecurity spending and the company's recently announced $25 billion acquisition of CyberArk, which is expected to strengthen its position in identity security for human, machine and agentic AI environments.

Analysts lift price targets on Palo Alto Networks

BTIG raised its price target on Palo Alto Networks to $380 from $333 while maintaining a Buy rating.

The brokerage described Palo Alto Networks as its “top pick,” citing improving momentum and larger deal sizes.

Wells Fargo also increased its price target to $420 from $325, maintaining its Overweight rating and adding the stock to its tactical ideas list due to a “clear catalyst path.”

The positive analyst commentary helped push the stock to a fresh all-time high.

BTIG also named Palo Alto Networks among its preferred "second-half outperformer" stocks alongside On Holding and Capital One, reinforcing expectations that the cybersecurity company could continue to outperform despite its strong gains over the past year.

AI security demand remains a key growth driver

Investor optimism has been supported by expectations that the adoption of AI agents will increase cybersecurity risks and drive higher enterprise spending on security platforms.

The company's acquisition of CyberArk has also strengthened that outlook by expanding Palo Alto Networks' exposure to security solutions covering human, machine and agentic AI identities.

At the same time, analysts noted two risks facing the stock: its elevated valuation and the possibility that a portion of its growth is being driven by acquisitions rather than organic expansion.

Technical indicators point to strong momentum

The stock has gained about 79% over the past 12 months and is now trading above its previous 52-week high of $358.10, a level that technical analysts often view as potential new support if the breakout is sustained.

Palo Alto Networks is also trading significantly above key moving averages, sitting roughly 40.2% above its 50-day simple moving average of $254.97 and about 76.8% above its 200-day simple moving average of $202.25.

Momentum indicators suggest the rally has become extended. The stock's Relative Strength Index (RSI) stands at 80.28, indicating overbought conditions that could leave shares vulnerable to consolidation or a pullback even if the broader uptrend remains intact.

The longer-term trend, however, continues to appear positive. The 50-day moving average remains above the 100-day moving average, while a golden cross—formed in May when the 50-day moving average moved above the 200-day moving average—continues to support the bullish technical outlook.

Broader market sentiment also provided support, with the Nasdaq-100 rising 1.37% on Monday.

However, analysts cautioned that as momentum continues to build, the risk of the stock becoming a "crowded trade" also increases.