Robert W. Baird analyst Shrenik Kothari has maintained their bullish stance on PANW stock, giving a Buy rating yesterday.
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Shrenik Kothari has given his Buy rating due to a combination of factors that highlight Palo Alto Networks’ strong positioning and growth potential. The company is expected to report robust Next-Gen Security Annual Recurring Revenue (NGS ARR) that will likely exceed guidance, indicating solid business momentum even in the face of tough year-over-year comparisons. Additionally, the company benefits from easing comparisons in the latter half of the fiscal year, along with multi-quarter tailwinds from customer retention and platformization.
Moreover, channel checks suggest Palo Alto Networks is gaining market share in key security areas such as SIEM/SecOps and single-vendor SASE adoption, reinforcing its strength in platform consolidation. Management’s focus on annual billings and free cash flow stability, along with a strategic emphasis on deepening federal agency relationships, provides additional support for the Buy rating. This approach is anticipated to stabilize the company’s financial performance, despite challenges such as elongated enterprise sales cycles and federal procurement complexities.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $240.00 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.