KeyBanc Upgrades Palo Alto Networks and Sets a $380 Target

KeyBanc raised Palo Alto Networks to overweight from sector weight and set a $380 price target, citing an expected acceleration in security budgets and the company’s AI security products.

The target was nearly 18% above Thursday’s close. Palo Alto Networks shares had fallen about 19% over the previous month.

KeyBanc analyst Eric Heath said the bank expects “security budgets to accelerate through 2027.” He also cited companies’ efforts to consolidate cybersecurity services and Palo Alto’s products for securing AI and defending against AI threats.