Saiyi He, an analyst from CMB International Securities, maintained the Buy rating on Palo Alto Networks (PANW – Research Report). The associated price target was lowered to $230.30.
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Saiyi He has given his Buy rating due to a combination of factors, primarily driven by Palo Alto Networks’ impressive financial performance and strategic positioning. The company reported a 14.3% year-over-year increase in revenue for the second quarter of fiscal year 2025, surpassing market expectations. This robust growth was attributed to optimized sales and marketing expenses and the increasing demand for security solutions in the growing AI sector.
Moreover, Palo Alto Networks’ Next-Generation Security products have shown substantial growth, with a significant rise in Annual Recurring Revenue and the number of large-scale deals, particularly in its SASE and Prisma Cloud offerings. The company’s focus on platformization, which has led to increased large deal wins, is expected to support long-term market share expansion and margin improvement. Additionally, the upward revision of the fiscal year 2025 guidance reflects management’s confidence in sustaining this growth momentum, further supporting the Buy recommendation.
According to TipRanks, He is a 5-star analyst with an average return of 15.1% and a 67.47% success rate. He covers the Communication Services sector, focusing on stocks such as Baidu, Iqiyi, and Meta Platforms.
In another report released on February 14, Barclays also maintained a Buy rating on the stock with a $213.00 price target.