PANW Price Target Raised to $253 on Firewall Demand Trends

Morgan Stanley raised its price target for Palo Alto Networks (PANW) to $253 from $223 on May 20, suggesting a 2% upside from the May 18 close of $247.55. This upgrade comes as PANW is expected to report fiscal third-quarter results on June 2, with analysts anticipating a significant performance, particularly in remaining performance obligations growing closer to 33% year over year. The motivations behind the price target increase include strong demand across firewall refreshes and AI security solutions. The upgrade reflects confidence in Palo Alto's growth relative to strong performances from competitors like Fortinet and Cisco.