Bernstein raised the firm’s price target on Palo Alto Networks (PANW) to $229 from $215 and keeps an Outperform rating on the shares. The firm notes Palo Alto’s Q2 delivered another quarter of incremental growth for their “platformization strategy,” beating NGS ARR guidance by 120 bps on the back of 75 new platformization wins up from 45 last quarter and 45 one year ago in Q2 2024. Further driving NGS ARR performance is continued growth in the average size of these deals. Seasonally, Q3 and Q4 are stronger, and the company guided they will generate more quarter-over-quarter expansion than Q2. And given the -1-year comparable sales also become easier, Bernstein anticipates the quarter-over-quarter contribution increases relative to the prior year.
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