Palo Alto Networks, Inc. (NASDAQ:PANW) is a top AI stock on Wall Street’s radar. Analyst Peter Weed lowered the price target to $204.00 but maintained an Outperform rating. The CyberArk acquisition, despite negative investor reaction, is seen positively with long-term strategic benefits outweighing short-term concerns.

Palo Alto Networks recently announced a deal to acquire CyberArk for approximately $25 billion. While initial investor reaction was negative, the deal is viewed as strategically beneficial in closing the gap in Palo Alto’s portfolio and entering the AI-winning cybersecurity market.

The CyberArk acquisition is considered accretive despite initial market volatility. Palo Alto Networks sees this deal as a strategic move to enter the identity space and strengthen their position in the AI cybersecurity market. Investors’ concerns are viewed as unwarranted, with the deal offering significant potential benefits.

Palo Alto Networks is recognized as a leader in AI-powered cybersecurity. The acquisition of CyberArk is expected to further solidify their position in the market and enhance their portfolio offerings in the AI cybersecurity space.

While Palo Alto Networks presents investment potential, other AI stocks may offer greater upside and lower risk. Investors seeking undervalued AI stocks with potential for growth should explore alternative options outside of PANW. Check out our free report on the best short-term AI stock for more information.

Read more at Yahoo Finance: Palo Alto Networks (PANW) Price Target Trimmed to $204 Despite Positive CyberArk Outlook