Acquisition of CyberArk (CYBR.US) strengthens platform strategy, internet security giant Palo Alto (PANW.US) enters Wedbush's "Best Investment List".

Wedbush published a research report, including the network security giant Palo Alto Networks (PANW.US) in its "Best Ideas" investment list. Analyst Dan Ives of Wedbush stated in a report to clients, "We are adding Palo Alto Networks to Wedbush's 'Best Ideas' list (the company has been selected for the 'IVES AI 30 Index') due to our confidence in its platform strategy following its recent strategic acquisition of CyberArk (CYBR.US), which we believe will continue to drive the company's growth through fiscal year 2026 and beyond." "Based on the company's performance in the fourth quarter of fiscal year 2025, along with positive feedback from clients and partners, it is clear that its platform strategy continues to gain market recognition... We believe the platform strategy is the right direction for Palo Alto Networks. In the AI revolution wave, network security has become an important secondary and tertiary derivative track, which will ultimately help the company dominate the market and gain market share and industry influence." Based on the above assessment, Wedbush reiterated its "outperform" rating for Palo Alto Networks and maintained a target price of $225. The analyst further pointed out that the recent decline in Palo Alto Networks' stock price is due to the upcoming completion of the CyberArk acquisition, providing investors with a "golden buying opportunity" as this acquisition will help improve the company's platform layout. In addition, Palo Alto Networks' latest financial report showed revenues and profits exceeding market expectations, and its annual recurring revenue (ARR) and remaining performance obligations (RPO) for the next-generation security business also performed better than expected. The analyst added, "Looking ahead to fiscal year 2026, we expect Palo Alto Networks' annual recurring revenue in the next-generation security business to continue to grow strongly, covering core areas such as Secure Access Service Edge (SASE), eXtended Security Intelligence and Automated Management (XSIAM), and artificial intelligence product suites. Through the platform strategy, these businesses will continue to gain market recognition and achieve scale expansion. As the trend of enterprises moving towards cloud services deepens, more strategic enterprise-level AI projects are expected to land in the next 6 to 12 months, allowing Palo Alto Networks to accelerate transaction processing and consolidate its market position with advantages."