Palo Alto Networks started at Buy, named to DA Davidson ‘Best of Breed Bison’

DA Davidson initiated coverage of Palo Alto Networks with a Buy rating and $380 price target. The firm also names the stock to its “Best-of-Breed Bison” list that “attempts to identify the highest quality companies with strong competitive positioning and exceptional financials.” While the company’s three platforms enable greater vendor consolidation than any other pure play cybersecurity vendor, Palo Alto Networks has still captured just 7% market share in a total addressable market that is quickly approaching over $200B, the analyst tells investors in a research note. The management’s “platformization” strategy will continue weighing on the company’s billings growth near-term, but its Current Remaining Performance Obligation, or cRPO,growth acceleration and 47% annual recurring revenue point to “very robust” bookings growth, DA Davidson added.