Analyst Shrenik Kothari from Robert W. Baird maintained a Buy rating on Palo Alto Networks and keeping the price target at $230.00.
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Shrenik Kothari has given his Buy rating due to a combination of factors that suggest a positive outlook for Palo Alto Networks. The company is entering its fiscal fourth quarter with favorable conditions, including easier year-over-year comparisons in revenue and annual recurring revenue, which are expected to show significant growth. Additionally, the strategic acquisition of CYBR is anticipated to enhance the company’s platform capabilities and create synergies, particularly in identity-led AI, which are expected to benefit the company in the long term.
Valuation also plays a critical role in Kothari’s recommendation. Despite recent sentiment challenges following the CYBR deal, the stock’s valuation has become more attractive, trading at a discount compared to its peers. This presents a compelling risk/reward scenario, especially as investor focus shifts towards the durability of the platform and the realization of synergies post-acquisition. Channel checks further support this positive outlook, indicating strong fiscal year-end performance and momentum in large deals, which bolster the case for a Buy rating.
According to TipRanks, Kothari is a 5-star analyst with an average return of 22.9% and a 68.33% success rate. Kothari covers the Technology sector, focusing on stocks such as Check Point, Tenable Holdings, and Palo Alto Networks.
In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $220.00 price target.