Analyst Shaul Eyal from TD Cowen reiterated a Buy rating on Palo Alto Networks (PANW – Research Report) and increased the price target to $230.00 from $210.00.
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Shaul Eyal has given his Buy rating due to a combination of factors highlighting Palo Alto Networks’ robust financial performance and strategic growth initiatives. The company reported impressive growth in its Next-Gen Security Annual Recurring Revenue (ARR) by 37% year-over-year, reaching $4.8 billion, alongside a 21% increase in Remaining Performance Obligations (RPO), totaling $13 billion. The solid revenue growth of 14% year-over-year to $2.3 billion, which surpassed consensus estimates, and a 20% rise in subscription revenue further underscore the company’s strong market position.
Palo Alto Networks’ strategic initiatives such as platformization and international expansion have driven momentum, particularly in SASE, software firewalls, and XSIAM performance. Additionally, the launch of Cortex Cloud and ongoing partnerships, notably with IBM, have bolstered its market offerings and customer base. Despite potential disruptions from changes in the US administration, the company’s low exposure to the federal vertical minimizes risks. Eyal’s positive outlook is further supported by the company’s ability to maintain a healthy adjusted free cash flow margin, expected to exceed 37% through FY27.
In another report released on February 12, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $223.00 price target.
PANW’s price has also changed moderately for the past six months – from $333.230 to $201.880, which is a -39.42% drop .