Palo Alto Networks (NASDAQ:PANW) surged in trading at the time of writing. This comes after Wall Street analysts called the cybersecurity firm’s surprise Friday afternoon earnings release and conference call as “water under the bridge.” The company reported better-than-expected fiscal Q4 earnings with a slight revenue miss.
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Top-rated Wedbush analyst Dan Ives noted the company’s strength in leveraging its next-gen portfolio for growth. The company’s CEO, Nikesh Arora, remained confident about its guidance for 2024, with expected billings estimated to be between $10.9 billion and $11 billion and adjusted earnings likely to be in the range of $5.27 to $5.40 per share. This upbeat guidance seemed to ease investor worries.
Palo Alto is aiming for a compound annual growth rate in the range of 17% to 19% in billings and revenue from 2023 to 2026, benefiting from its shift to software-based solutions.
Analyst Ives has a Buy rating with a price target of $290, implying an upside potential of 18.8% at current levels.
Overall, analysts remain bullish on PANW stock, with a Strong Buy consensus rating based on 30 Buys and two Holds.
