It’s time to hop off the Palo Alto Networks seesaw, Guggenheim Securities says. Analysts John DiFucci and Lawrence Vensko downgraded shares of the cybersecurity stock to Sell from Neutral. They set a target of $130 for the price;

Palo Alto Networks Inc.’s stock is up 40% from its February low — but a Guggenheim analyst questions whether the cybersecurity name will be able to continue defying doubts.

DiFucci highlighted that Palo Alto Networks has recorded five consecutive quarters of declining new annual recurring revenue (ARR), a critical metric for gauging business momentum.

In contrast to Palo Alto's positioning in network security, CrowdStrike dominates in endpoint protection, securing end-user devices as they access network data across an increasingly diverse Internet of Things (IoT) ecosystem.

Fintel reports that on January 6, 2025, Guggenheim downgraded their outlook for Palo Alto Networks (NasdaqGS:PANW) from Neutral to Sell. Analyst Price Forecast Suggests 17.57% Upside As of December 23,

Palo Alto's management calls out a huge tailwind in the cybersecurity industry called "platformization." This is when a company uses a single provider for most of its cybersecurity needs, rather than piecing together parts from various vendors. This is CrowdStrike's strategy as well, and it makes these two formidable foes.