Citigroup raised its price target on Palo Alto Networks to $440 from $410. It maintained a Buy rating on the stock. A CIO survey indicated accelerating cybersecurity spending. Corporate investments in artificial intelligence largely drove this trend. The survey found 82% of technology executives reported increased security expenditures due to AI initiatives.
The bank noted cybersecurity remains a top area for IT budget consolidation. This trend positions platform vendors like Palo Alto Networks as key beneficiaries of increased spending. Citi also increased price targets for other major cybersecurity firms. These included CrowdStrike and Zscaler. The bank cited the same positive demand signals from its industry survey.