TipRanks-backed analyst picks highlight Palo Alto, MongoDB and Costco for long-term investors

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Analyst picks: Palo Alto, MongoDB, Costco

Highlights

Palo Alto Networks target set at $450 by Oppenheimer, with next-gen security annualized recurring revenue expected at $9.55 billion—two points above guidance.
BTIG initiated MongoDB with a buy and $417 target, projecting core addressable market at $15 billion and 24% annual revenue growth over three years driven by AI tailwinds.
Costco announced a $30 per share special dividend for Dec. 4 and launched a new $4 billion buyback program through November 2030, reinforcing Oppenheimer's $1,160 price target.

Analyst calls and upcoming catalysts

As reported by CNBC, citing TipRanks, several highly rated Wall Street analysts are pointing investors to Palo Alto Networks, MongoDB and Costco as long-term opportunities despite near-term market swings.

Palo Alto Networks is preparing to report fiscal first-quarter earnings on Nov. 18, with Oppenheimer analyst Ittai Kidron reiterating a buy rating and a $450 price target. He says channel checks suggest upside from the CyberArk and Chronosphere acquisitions, along with continued strength in the company’s core businesses. Kidron expects next-generation security annualized recurring revenue of about $9.55 billion, roughly two percentage points above the midpoint of guidance and consensus, and sees revenue coming in 1 to 1.5 percentage points above the $3.305 billion guidance and consensus level.

Kidron also says partner checks point to above-plan performance driven by firewall-attached subscriptions and momentum in Prisma SASE and XSIAM. He adds that management is likely to stay conservative on fiscal 2027 guidance, even if quarterly results beat expectations, while Prisma AIRS is still seen by partners as entering its first meaningful revenue year in calendar 2027.

MongoDB also draws a bullish view after BTIG analyst Gray Powell initiated coverage with a buy rating and a $417 price target. Powell estimates the company’s core addressable market at nearly $15 billion and says multiple tailwinds could support revenue growth of more than 20% over the next several years.

Beyond its core document and vector database activities, Powell says MongoDB has exposure to about $72 billion in adjacent markets that could expand to roughly $121 billion over four years. He argues that even modest share gains in those segments could help the company grow revenue at about a 24% annual rate over the next three years, above management’s target, with AI acting as a tailwind through application modernization, faster migrations and early traction in Voyage AI and Vector Search.

Shareholder returns and sector implications

Costco joins the list after announcing a special cash dividend of $30 per share, payable on Dec. 4, and a renewed stock repurchase authorization of up to $4 billion. The new buyback program runs through November 2030 and replaces the current $4 billion plan that is due to expire in January 2027.

Following that announcement, Oppenheimer analyst Rupesh Parikh reiterates a buy rating and a $1,160 price target on the retailer. He says the special dividend is a key catalyst and comes in well above his estimate of about $20 per share, although he expects the payment to reduce interest income substantially.

Parikh maintains that Costco’s long-term outlook remains supported by its value proposition, competitive position and record of returning capital to shareholders. He also says the company’s management strength and ability to keep growing sales and profit in a competitive retail environment leave room for further upside, including the possibility of a future stock split.

Together, the three calls underline where analysts see durable themes for investors willing to look past short-term volatility, including cybersecurity demand tied to cloud and AI adoption, data infrastructure expansion linked to AI workloads, and defensive retail models with strong capital return policies.

In earlier coverage, we examined Bank of America defensive picks as investors sought safer U.S. stocks amid volatility.

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