Palo Alto Networks Inc. (NASDAQ:PANW) is one of the best large-cap tech stocks to buy now, according to Morgan Stanley’s Keith Weiss. The company is set to acquire CyberArk Software Ltd. for approximately $25 billion, strengthening its identity security solutions and revenue outlook for fiscal year 2025.

The acquisition of CyberArk is expected to close in the second half of Palo Alto’s fiscal 2026, with shareholders receiving $45 in cash and 2.2005 Palo Alto shares per CyberArk share. This strategic move aligns with the growing importance of identity protection in the cybersecurity landscape, positioning Palo Alto Networks for long-term success.

Morgan Stanley maintains a Buy rating on Palo Alto Networks, citing the company’s strong free cash flow generation, high margins, and potential synergy benefits from the CyberArk acquisition. The deal is expected to drive immediate revenue and gross margin growth, with free cash flow per share accretion targeted for 2028.

Palo Alto Networks provides security solutions for enterprise users, networks, clouds, and endpoints. While PANW offers investment potential, other AI stocks may have greater upside and lower risk. For more information on undervalued AI stocks and investment opportunities, refer to the Insider Monkey’s free report on the best short-term AI stock.

Read more at Yahoo Finance: Morgan Stanley Maintains Buy on Palo Alto (PANW) as CyberArk Deal Strengthens Growth Outlook