Morgan Stanley analysts raised their price target for Palo Alto Networks (NASDAQ:PANW) from $304.00 to $375.00, continuing to assign an Overweight rating. The stock is highlighted as the preferred choice in its sector, with expectations for 2024 to be an outstanding year for cybersecurity. Shares rose more than 5% higher today.

The analysis suggests that despite a 70% increase in the median security stock last year, the sector is poised for further growth in 2024. This is due to anticipated improvements in demand throughout the year, which are likely to lead to more significant positive revisions in estimates. Recent research and survey data support this outlook, with a projection of accelerated security budgets in 2024 compared to 2023.