Palo Alto Stock’s Retail Followers Cheer New NHL Partnership, But Shares Slip Amid Tech Sell-Off

Cybersecurity company Palo Alto Networks, Inc. (PANW) announced Wednesday that it has signed a multi-year partnership with the National Hockey League (NHL).

Santa Clara, California-based Palo Alto said the multiyear North American partnership is aimed at ensuring the utmost cybersecurity for the NHL. The company has provided the NHL with cybersecurity solutions since 2009. 

Palo Alto will provide NHL network security with its next-generation firewalls, cloud security and artificial intelligence (AI)-powered security operations. 

The company’s solutions will enable league employees to browse securely with Prisma Access Browser and safely use AI apps with AI Access Security.

Additionally, the new partnership will provide Palo Alto with exclusive marketing rights and designations, connecting the Palo Alto brand with the NHL and its fans through the league’s marketing, digital, and social media channels throughout the partnership's duration.

KP Unnikrishnan, Chief Marketing Officer of Palo Alto Networks, said,  "We are proud to stand alongside the NHL as their trusted cybersecurity partner and look forward to continuing to deliver value to the NHL's business while seizing the opportunities of this deepened relationship."

Last week, Morgan Stanley assumed coverage of Palo Alto with an ‘Overweight’ rating and a $230 price target, TheFly reported. 

The brokerage said it sees a large Extended Security Intelligence and Automation Management (XSIAM) growth opportunity, thanks to the recent IBM QRadar deal. The firm expects inflecting technology trends, driven by AI, to fuel strong cybersecurity demand.

On Stocktwits, retail sentiment toward Palo Alto stock remained ‘bullish’ (66/100), and the message volume perked up to ‘high’ levels.  

A bullish watcher predicted the stock would hit the $200 level.

Palo Alto stock fell about 1.50% to $187.11 Wednesday morning, as it reacted to the tech sector weakness following three straight sessions of gains. The stock is up 4.4% this year compared to the Nasdaq Composite’s 5.4% drop.

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