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Feb 18, 2026
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LONG
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Scotiabank maintained a "Sector Outperform" rating on Palo Alto Networks but lowered its price target to $180. The stock was reported to be trading at $151.50. While a price target reduction is typically bearish, the maintained "Sector Outperform" rating signals underlying conviction in the company's relative strength. The new $180 target still represents significant potential upside of ~18.8% from the reported price, suggesting the analyst views the recent sell-off as excessive. This trade is based on the analyst's view that despite near-term concerns that prompted the target reduction, PANW remains a best-in-class name that is now trading at a more attractive valuation. The trade seeks to capitalize on the potential rebound as the market digests the nuance of the analyst's position beyond the negative headline. The reason for the price target cut is unknown and could stem from a fundamental deterioration in the business outlook. The cybersecurity sector could face continued spending pressures, preventing PANW from reaching the price target. The stock's negative momentum could continue in the short term. |
Finnhub - PANW
Scotiabank Maintains Sector Outperform on Pal...
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