Scotiabank Raises Palo Alto Networks (NASDAQ: PANW) Price Target Amid Strong Cybersecurity Performance

Font: Financial Modeling Prep  • Aug 31, 2026

• Scotiabank raised Palo Alto Networks (NASDAQ: PANW) price target to $430, indicating a 13% upside.
• Palo Alto Networks shares surged 30% post-Q3 results, significantly outperforming the broader tech sector.
• Analysts anticipate strong Q4 results and substantial future growth, including $6.4 billion in free cash flow by 2028.

An analyst from Scotiabank has increased the price target for Palo Alto Networks (NASDAQ: PANW) to $430 from $320. At the time of the announcement, Palo Alto Networks was trading at $380.57, which means the new target suggests a potential upside of about 13%. Palo Alto Networks is a global cybersecurity company that provides advanced firewalls and cloud-based security solutions.

This analyst optimism reflects strong performance by the company. Palo Alto Networks' shares have seen a significant 30% increase since its third-quarter results. This growth greatly outperforms the 5% gain of the iShares Expanded Tech-Software ETF (NASDAQ: IGV), an investment fund that tracks a basket of technology and software companies, showing Palo Alto Networks' strength within its sector.

Expectations are high for Palo Alto Networks' upcoming fiscal fourth-quarter results. As highlighted by Jefferies, Palo Alto Networks is anticipated to exceed expectations for key metrics like total revenue and annual recurring revenue. Annual recurring revenue is a measure of predictable revenue that a company expects to receive from its customers over a year.

Further analysis from Jefferies projects product growth could reach 18% year-over-year, with Secure Access Service Edge (SASE) identified as a primary growth driver. The firm also forecasts that Palo Alto Networks' management will guide for fiscal 2027 revenue growth above the current consensus of 21% and generate over $6.4 billion in free cash flow by 2028.

Supporting this outlook is a new strategic partnership with global systems integrator NTT DATA (TYO: 9613). This alliance aims to create $1 billion in combined business by the end of 2029. Additionally, strong product growth reported by competitor Fortinet (NASDAQ: FTNT) is viewed as a positive indicator for the health of the overall cybersecurity industry.