KeyBanc Upgrades Palo Alto Networks to Overweight, Setting $380 Price Target Amid Recent Dip

KeyBanc has upgraded Palo Alto Networks (PANW) to Overweight, citing expectations that enterprise security budgets will accelerate through 2027. Analyst Eric Heath set a $380 price target, implying roughly an 18% upside from the latest close. Heath highlighted Palo Alto’s strong position in the trend toward cybersecurity consolidation, particularly in securing AI platforms and defending against evolving AI threats, noting the company’s superior execution compared with many peers. Despite a roughly 19% decline in the stock over the past month—driven by concerns over its elevated valuation—KeyBanc views the pullback as an attractive entry point. The upgrade aligns with broader Wall Street sentiment, with 44 of the 55 analysts covering the firm rating PANW as Buy or Strong Buy. Palo Alto Networks shares rose about 3% in premarket trading.

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