Citi, Goldman Boost PANW Targets as AI-Driven Security Spending Surges

Palo Alto Networks (PANW) is seeing renewed optimism from Wall Street analysts at Citi and Goldman Sachs, who have raised their price targets on the cybersecurity firm.

Citi increased its target to $340 from $210, citing steady growth in next-generation security and rising enterprise spending tied to AI adoption. This comes despite PANW shares trading lower in after-hours trade, down 2.3% following a 5.64% decline in the regular session.

Growth momentum is expected to continue, with Citi's Fatima Boolani noting that double-digit growth in next-generation security annual recurring revenue is likely to persist. Goldman Sachs also raised its price target to $330 from $224 after PANW's Q3 earnings beat, highlighting AI as a key driver of incremental security spending.

The firm expects ongoing share gains in categories like security operations and observability, as well as rising demand across AI-focused product cycles.