Scotiabank Maintains Sector Outperform on Palo Alto Networks, Lowers Price Target to $180
Original source ↗  |  February 18, 2026 at 09:59 UTC  |  Finnhub - PANW
Speakers
Benzinga

Summary

  • Scotiabank maintained its "Sector Outperform" rating on Palo Alto Networks (PANW), indicating a continued belief that the stock will perform better than its industry peers.
  • Despite the positive rating, the analyst lowered the price target on PANW to $180.
  • The article provides no rationale for the change but notes the stock price at $151.50, down 7.34%, at the time of publication.
  • The new $180 price target, while reduced, still implies significant potential upside (approx. 18.8%) from the reported current price.

=== MARKET IMPLICATIONS === - The dual action from Scotiabank sends a mixed signal to the market. Maintaining "Sector Outperform" is a vote of confidence in PANW's competitive position, but lowering the price target suggests tempered expectations for valuation, growth, or profitability, possibly due to broader sector headwinds or company-specific concerns. - The stock's sharp decline (-7.34%) suggests the market is weighing the negative price target revision more heavily than the maintained positive rating. This could be part of a broader negative news cycle for the company or the cybersecurity sector. - A contrarian view is that this presents a buying opportunity. The market may be overreacting to the headline PT cut, creating an attractive entry point for a stock that a major bank still believes will outperform its sector and has a price target well above its current trading level.

Trade Ideas
Ticker Direction Speaker Thesis Time
PANW
LONG Benzinga (reporting on Scotiabank) 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. —