Palo Alto Networks Inc. (NASDAQ:PANW) is considered one of the best debt-free stocks to buy now, with UBS cutting its price target on the company’s stock to $215 while maintaining a Neutral rating.

UBS is positive on the cybersecurity sector, expecting spending to outpace growth in overall IT budgets, driven by consolidation and increased commercialization of AI-enabled solutions.

The firm warns that stock selection may be challenging, favoring mid-cap security platform stocks with early-stage product ecosystems and growth potential.

Data from TipRanks show UBS has maintained a cautious stance on PANW due to softness in platformization deals and potential deceleration in service revenue growth.

Guggenheim upgraded PANW to Neutral from Sell in January, citing underperformance and recent strategic acquisitions that will enhance its competitive position.

PANW offers security solutions for enterprise users, networks, clouds, and endpoints through platforms like Prisma Access, Prisma Cloud, and Cortex.

While PANW has investment potential, some AI stocks may offer greater upside potential with less downside risk, especially in the current market environment.

Read more at Yahoo Finance: Analysts Remain Cautious on Palo Alto (PANW) Amid Growth Challenges