Analyst Peter Weed of Bernstein maintained a Buy rating on Palo Alto Networks (PANW – Research Report), with a price target of $229.00.
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Peter Weed has given his Buy rating due to a combination of factors concerning Palo Alto Networks’ performance and strategic initiatives. The company has shown consistent growth through its platformization strategy, surpassing its NGS ARR guidance. This growth is supported by an increase in the number of platformization deals and the average size of these transactions.
Additionally, the company’s product segment, particularly in hardware and software firewalls, is expected to see double-digit growth, driven by the strength in their FWaaP software. Management anticipates continued growth in this area as other vendors enter refresh cycles. Moreover, improvements in non-GAAP operating margins provide a strong foundation for free cash flow, despite a shift towards deferred revenue bookings. The combination of these factors and the anticipated revenue growth from deferred payments supports the updated price target and maintains the Outperform rating.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $212.00 price target.
Based on the recent corporate insider activity of 122 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.