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Stock prices of Palo Alto Networks have risen, with financial experts increasing their price projection expectations.

Stock price of Palo Alto Networks surged by more than 14% following the August 14 disclosure of its Q4 fiscal earnings. However, some analysts predict that there is still room for growth. Additionally, shorting out-of-the-money puts appears to be a promising strategy in this scenario.

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Stock prices of Palo Alto Networks have risen, with analysts boosting their projections
Stock prices of Palo Alto Networks have risen, with analysts boosting their projections

Stock prices of Palo Alto Networks have risen, with financial experts increasing their price projection expectations.

Palo Alto Networks (PANW) has seen a significant surge in its stock price over the past month, with the company's shares rising over 14% from $176.17 since the Aug. 14 release of its fiscal Q4 earnings. As of today, PANW stock is trading at $201.31.

Analysts are optimistic about the company's future, with revenue for the year to July 2026 expected to range between $10.51 billion and $11.91 billion. The next 12 months run rate revenue is projected to be $10.86 billion.

The current analyst price targets for PANW range approximately between $130 and $225, with notable recent targets including $215 by Bank of America, $225 by Wedbush, $220 by Truist Securities, and $135 by Guggenheim Securities. The website's mean survey for PANW stock target price is $215.29, while AnaChart.com reports an average target price of $224.7 for PANW stock. The new average target price for PANW stock by analysts is $214.21, up from $213.49 a month ago.

On Aug. 19, an article was published on the website stating that PANW stock could be worth $213.00 per share. In one month, the profit from the suggested 1-year in-the-money (ITM) call option for PANW with a strike price of $165.00 was $1,142. This provides a potential yield of 1.45% for just 31 days for shorting OTM puts.

The return from the suggested 1-year ITM call option was approximately 27.8%, while the return from PANW stock over the same period was 9.26%. PANW stock still looks undervalued, making it a good candidate for both buying long-term ITM calls and shorting OTM puts in nearby expiry periods.

The breakeven point for the PANW short-put investor is $187.24. Shorting OTM puts in nearby expiry periods could help reduce the overall cost of long-term call purchases. If PANW stock rises to $220.03, the short-put investor has a 17.5% upside. The Oct. 17, 2025, expiry period shows that the $190.00 put option exercise price has a midpoint premium of $2.76.

With a market cap of $134.529 billion, Palo Alto Networks continues to be a significant player in the IT industry. The return on investment for both short-term and long-term options suggests that PANW could be a profitable investment for those willing to take a calculated risk.

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