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Optimism Surrounds Palo Alto Networks Before Earnings

Keybanc lifted its price target to $240 today

Deputy Editor
Feb 11, 2025 at 2:17 PM
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Software name Palo Alto Networks Inc (NASDAQ:PANW) is gearing up for its latest quarterly report, due out after the close on Thursday, Feb. 13. Wall Street expects earnings of 78 cents per share on revenue of $2.24 billion, representing a 6.9% and 13.3% increase, respectively, from the same quarter last year. Keybanc is optimistic ahead of the event, lifting its price target to $240 from $217 today. 

Options bulls have been chiming in as well. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), PANW's 50-day call/put volume ratio of 2.24 ranks higher than 98% of readings from the past year. 

PANW's post-earnings history leans positive, with five of the last eight next-day moves ending in gains. This time around, the options pits are pricing in a 12.3% swing, regardless of direction, which is larger than the 10.1% move the stock has averaged over the last two years. 

On the charts, the stock has been chopping higher, moving toward its Dec. 17 record high of $207.24. After bouncing off familiar support at the $180 level, which coincided with its 20-day moving average, PANW marked five-straight gains last session. The stock has pulled back slightly today, however, down 0.6% at $195.19 at last glance. 

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