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Analysts Hail Palo Alto Networks On Q1 Beat, See Huge Upside

Analysts raised price targets on Palo Alto Networks Inc’s (NASDAQ: PANW) Q1 beat, posting growth in every metric, including billings amid supply chain constraints.

  • Piper Sandler analyst Rob Owens raised the PT to $675 from $600 (28% upside) and kept an Overweight.

  • With a growing portfolio “that is clearly resonating,” he believes Palo Alto is “uniquely positioned to capitalize on the favorable demand environment for security solutions.”

  • JMP Securities analyst Erik Suppiger raised the PT to $585 from $550 (11% upside) and kept an Outperform.

  • While the supply chain constraints were challenging and higher material costs were compressing gross margins, customers provided greater visibility into orders, leading to more appliances than the initial forecast.

  • Palo Alto’s product revenue, reflecting its firewall appliance business, bagged the best growth rate in 2.5 years.

  • Baird analyst Jonathan Ruykhaver raised the PT to $625 from $540 (19% upside) and kept an Outperform.

  • The analyst said that despite declines in some next-gen security growth metrics, he believes the company continues to gain traction with its multi-platform strategy. He likes the continued focus around areas of security he sees as more strategic.

  • Credit Suisse analyst Phil Winslow raised the PT to $635 from $625 (21% upside) and kept an Outperform.

  • The analyst believes that Palo Alto Networks’ best-in-class technology platform, large and growing on-premises installed base, broadening cloud-centric product portfolio, and management’s ability to execute its vision position the company to continue gaining share in the security market.

  • Raymond James analyst Adam Tindle raised the PT to $600 from $450 (14% upside) and kept an Outperform.

  • Oppenheimer analyst Ittai Kidron raised the PT to $600 from $550 and kept an Outperform.

  • The analyst remains bullish on the long-term opportunity for share gains in an expanding TAM environment.

  • Truist analyst Joel Fishbein raised the PT to $600 from $525 and kept a Buy.

  • Palo Alto continues to be a “key beneficiary” of the recent cyberattacks and the remote work trend and is the best-positioned security company to benefit from vendor consolidation.

  • BTIG analyst Gray Powell raised the PT to $610 from $555 (16% upside) and kept a Buy.

  • On the product revenue side, Palo Alto Network sees strong adoption of its newer appliance lines, intense refresh activity, incremental share gains, and customers ordering ahead of demand.

  • Wedbush analyst Daniel Ives raised PT to $630 from $600 (20% upside) and kept an Outperform.

  • Palo Alto’s quarterly results were “blow out,” with healthy guidance suggesting the company’s cloud-driven strategy is resonating increasingly well with cyber security customers in the field.

  • Loop Capital analyst Yum Kim raised the PT to $530 from $475 and kept a Hold.

  • Despite some supply-chain issues, Palo Alto Networks was able to show accelerating product revenue growth, and he sees some tailwinds coming from price increase towards the end of the quarter.

  • BMO Capital analyst Keith Bachman raised the PT to $615 from $560 (17% upside) and kept an Outperform.

  • Bachman adds that much like Fortinet Inc (NASDAQ: FTNT), Palo Alto’s product revenues had the most significant outperformance, and its product revenue visibility has also increased for the medium term.

  • RBC Capital analyst Matthew Hedberg raised PT to $660 from $590 (26% upside) and kept an Outperform rating.

  • Morgan Stanley analyst Keith Weiss raised the price target to $660 from $600 and maintained an Overweight rating.

  • Price Action: PANW shares traded higher by 1.2% at $526.27 on the last check Friday.

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