The proposed $25 billion acquisition reflects the growing importance of identity management — and would fill a crucial gap in the Palo Alto Networks portfolio.

When the market overreacts, buying opportunities have a way of presenting themselves. That’s the case for Palo Alto Networks, whose stock tumbled after it agreed to buy CyberArk Software for $25 billion. It’s set to report earnings on Aug. 18.

The cybersecurity giant is getting into identity security with its acquisition of CyberArk, which is one of the biggest cybersecurity deals of the year so far.

Since 2018, Palo Alto has been transforming its strategy - moving from a hardware-centric firewall company to a full-stack, cloud-first cybersecurity platform. It is now the largest cybersecurity firm by market cap,

Cybersecurity company Palo Alto Networks is buying CyberArk in a cash-and-stock deal valued at approximately $25 billion

Palo Alto reports earnings on Aug. 18, which will give investors a valuable update on its progress. Palo Alto Networks (NASDAQ: PANW) is the world's largest cybersecurity vendor, but with competitors like CrowdStrike (NASDAQ: CRWD) nipping at its heels,

Owens of Piper Sandler upgraded Palo Alto stock to Overweight from Neutral and lifted his price target to $225 from $200 in a research note. The company’s acquisition of CyberArk Software and its early success in getting customers to consolidate security solutions on its platform have Owens feeling bullish.

What Happened? Shares of cybersecurity provider Palo Alto Networks (NASDAQ:PANW) jumped 3.3% in the pre-market session after it received rating upgrades from two prominent Wall Street analysts, Piper Sandler and Deutsche Bank.