Citi analyst Fatima Boolani has maintained their bullish stance on PANW stock, giving a Buy rating yesterday.
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Fatima Boolani’s rating is based on several key factors that highlight Palo Alto Networks’ strong performance and future potential. The company has achieved record platformization deals, indicating robust customer engagement and expansion. This is further supported by a 120% net revenue retention rate among platformized customers, showcasing their growing adoption of Palo Alto’s offerings. Additionally, the company has demonstrated impressive growth in its Next-Generation Security annual recurring revenue, despite a slight deceleration over the past quarters.
Another significant factor contributing to the Buy rating is the strategic leadership changes within the company, with the longtime Chief Product Officer taking on the Chief Technology Officer role. This transition is expected to drive further innovation in identity and AI security, aligning with Palo Alto’s long-term growth strategy. Moreover, the company’s financial outlook remains strong, with improved free cash flow visibility and expectations of maintaining a high free cash flow margin by FY28. These elements, combined with a compelling thematic backdrop, support a positive outlook for Palo Alto Networks.
In another report released yesterday, Bernstein also maintained a Buy rating on the stock with a $207.00 price target.
Based on the recent corporate insider activity of 110 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PANW in relation to earlier this year.