Despite the recent pressure on Palo Alto Networks Inc.'s PANW stock due to the acquisition of CyberArk Software Ltd CYBR, the company remains "one of our favorite cyber security names to own over the next 12-18 months," according to Wedbush.

The Palo Alto Networks Analyst: Analyst Daniel Ives maintained an Outperform rating and price target of $225.

The Palo Alto Networks Thesis: The stock has been added to the Wedbush Best Ideas' List, "as we have incremental confidence in the company's platformization strategy heading into FY26 & beyond following its recent transformational acquisition of CYBR," Ives said in the note.

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The acquisition of CyberArk Software was the "right move at the right time" for Palo Alto Networks and is expected to be "a game changer," he added.

The latest earnings release for the fiscal fourth quarter and recent checks with customers and partners indicate that the company's platformization strategy is gaining further traction, the analyst stated.

The recent pressure on Palo Alto Networks' stock has created a "golden buying opportunity," as the company completes its platform approach and provides a "one-stop shop for cybersecurity" for enterprises, he wrote.

Cybersecurity will benefit from the AI revolution gaining momentum, Ives further said.

PANW Price Action: Palo Alto Networks shares were up 2.18% at $200.56 at the time of publication on Monday. The stock is approaching its 52-week high of $210.39, according to Benzinga Pro data.

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