Analyst Gray Powell from BTIG reiterated a Buy rating on Palo Alto Networks and keeping the price target at $248.00.
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Gray Powell’s rating is based on the strong growth potential observed in several aspects of Palo Alto Networks’ business. The company’s Prisma SASE segment demonstrates robust momentum, with over $1.3 billion in ARR and a year-over-year growth rate of 34%. With a vast base of Global Protect customers to convert and improving win rates, the segment is poised to sustain impressive growth over the next several years. Additionally, the software firewall business, which represents a significant portion of product revenue, is expanding rapidly at an annual growth rate of 25%, far surpassing hardware firewall growth and driving more predictable, sustainable revenue.
Powell also highlighted opportunities for Palo Alto Networks to capitalize on its Chronosphere acquisition and monetize cross-sell opportunities, which could generate meaningful financial returns. The company’s strong position in the identity space, bolstered by CYBR’s leadership in privileged access management, adds further confidence in its ability to maintain over 20% growth in this area. Collectively, these growth drivers, coupled with the company’s broader strategic initiatives, support the Buy rating and the $248 price target.
According to TipRanks, Powell is a 4-star analyst with an average return of 8.6% and a 54.02% success rate. Powell covers the Technology sector, focusing on stocks such as Palo Alto Networks, Datadog, and CrowdStrike Holdings.
In another report released yesterday, Mizuho Securities also maintained a Buy rating on the stock with a $220.00 price target.