The Club on Friday is changing the rating and price target on one of our favorite stocks, and updating the price targets on 5 other names in the portfolio to reflect recent quarterly earnings reports, new developments at the companies and broader economic forces. We’re increasing our price target on shares of Palo Alto (PANW) to $300 from $280. In our broader assessment of cybersecurity companies this earnings season, it’s clear there are just three winners gobbling up market share: Palo Alto Networks, CrowdStrike (CRWD), and Zscaler (ZS). This trio keeps making new high after new high as companies consolidate their security budgets around the best providers who can offer the broadest set of solutions. At the same time, we recognize that PANW has made a huge move since reporting Nov. 15 what was initially viewed as a confusing earnings report but looked like a clear-cut buying opportunity to us. This roughly 21% rally in 10 sessions has sent the company near a $100 billion valuation, which makes it hard for us to say it should be bought right here. That’s why we are moving our rating to a 2 — meaning we would buy on any pullbacks — even though we remain long-term bullish on this industry leader. We’re raising our price target on Costco (COST) shares to $630 from $600 as the wholesale retailer continues to see steady sales growth and market share gains from customers seeking value. On Wednesday, the company reported its sales for the retail month of November, and the results once again showed how Costco outperforms its peers and is a model of consistency. As we look out to 2024, a long awaited membership fee hike and special cash dividend could finally be in the cards, representing two potential catalysts that could send shares higher. We suspect management will be asked questions about both when Costco reports earnings on Dec. 14. We’re raising our price target on shares of Salesforce (CRM) to $275 from $240. The move comes after Wednesday night’s blowout…
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