Sep. 18 at 8:32 PM
Bernstein analyst Peter Weed downgraded Palo Alto Networks to Market Perform from Outperform, arguing that the cybersecurity sector’s broad rally had pushed valuations to or above fair value. Bernstein nevertheless raised its price target to
$351 from
$253, but the new target remained below the stock’s recent trading level, implying limited near-term upside under the firm’s valuation framework.
The downgrade was part of a broader sector reassessment, with Okta and SentinelOne also downgraded. Bernstein said the structural AI-driven cybersecurity demand story remains intact, but argued that after gains of roughly 100% since early 2026, much of the positive outlook was already reflected in valuations.
Recent insider selling added to the pressure, with a company director reportedly selling shares at around
$377 in the days before the session. The stock opened lower as investors digested the downgrade and valuation concerns.
$PANW