Palo Alto Networks (PANW) Vs CrowdStrike (CRWD): Which Stock Came Out On Top In Analyst Note?

Palo Alto Networks stock (NASDAQ:PANW) is 0.53% higher during the pre-market,  as an updated analysis from Morgan Stanley indicates a preference for PANW over its cybersecurity peer, CrowdStrike (CRWD).

The assessment highlights strategic acquisitions and robust financial forecasts as key drivers for the more bullish outlook on Palo Alto Networks.

The recent analyst note led to a revised price target for Palo Alto Networks, raised to $245 from $228, maintaining an “Overweight” rating. This suggests that Morgan Stanley anticipates PANW will outperform the market average.

Conversely, CrowdStrike's price target was increased to $537 from $515, but the stock retains an “Equal Weight” rating, implying an expected performance in line with the broader market. The comparative ratings signal a potentially more favorable investment opportunity in Palo Alto Networks.

The revised targets on each reflects a perceived upside of 32.8% in Palo Alto's stock from here, and 11% for Crowdstrike.

Palo Alto Networks' strategic moves, particularly its acquisition of Chronosphere for $3.35 billion, have strengthened its position in the cybersecurity landscape. The acquisition, announced on November 19, aims to integrate Chronosphere's cloud management and monitoring capabilities with Palo Alto's Cortex AgentiX platform. This integration is expected to enhance AI-driven autonomous detection and investigation of cloud performance issues. The deal is projected to close in the second half of fiscal 2026.

Following the Chronosphere acquisition announcement, Palo Alto Networks raised its fiscal 2026 revenue forecast to a range of $10.50 billion to $10.54 billion, up from the previous estimate of $10.48 billion to $10.53 billion. The company also increased its annual adjusted profit per share forecast to between $3.80 and $3.90. These upward revisions reflect strong demand for cybersecurity solutions amidst rising online threats.

In contrast, CrowdStrike has set ambitious long-term financial targets, including a goal of $20 billion in annual recurring revenue (ARR) by fiscal year 2036, more than quadrupling its current level. The company also aims for over 20% net new ARR growth in fiscal year 2027. These targets were presented during CrowdStrike's analyst day, emphasizing the benefits of platformization in addressing the escalating risks driven by artificial intelligence.

While CrowdStrike's long-term goals are ambitious, Morgan Stanley's updated ratings suggest a more immediate and compelling investment case for Palo Alto Networks. The “Overweight” rating for PANW, combined with the increased price target, implies a stronger conviction in the company's near-term growth prospects. The recent acquisition and subsequent upward revision of financial forecasts further bolster this positive outlook.