Robert W. Baird analyst Shrenik Kothari maintained a Buy rating on Palo Alto Networks today and set a price target of $230.00.
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Shrenik Kothari has given his Buy rating due to a combination of factors that highlight Palo Alto Networks’ strong financial performance and growth prospects. The company reported robust fourth-quarter results, surpassing expectations in key areas such as revenue, profitability, and annual recurring revenue (ARR). Specifically, the Next-Generation Security (NGS) ARR grew by 32% year-over-year, exceeding both the company’s guidance and consensus estimates.
Additionally, Palo Alto Networks demonstrated impressive growth in its remaining performance obligations (RPO), which increased by 24% year-over-year, again beating expectations. The company’s revenue and product revenue also saw significant year-over-year increases, contributing to an expanded adjusted operating margin and free cash flow margin. Looking ahead, the company’s fiscal year 2026 guidance indicates continued strong growth, with revenue and ARR projections ahead of market expectations, further supporting the Buy rating.
In another report released today, Truist Financial also reiterated a Buy rating on the stock with a $205.00 price target.