Palo Alto Networks: Does This Function-From-Residence Inventory Have Extra Place to Run?

Yet a different serendipitous COVID-19-connected results tale in the stock market is cybersecurity company Palo Alto Networks Inc. (PANW). Palo Alto has viewed its Q2 revenues rise thanks to the function-from-house change occurring throughout FY2020.

Even as parts of the global workforce return to places of work, the will need for robust cybersecurity software package is not anticipated to subside.   

Detailing this accomplishment is 5-star analyst Ittai Kidron of Oppenheimer, who remains bullish and maintains his score on the inventory as Obtain, keeping his 12-month price target at $420. This reflects a 15.88% upside potential on Palo Alto Networks’ Friday closing price tag of $362.45. 

On TipRanks, PANW earns a Powerful Invest in consensus rating primarily based on 19 Invest in, 1 Hold, and 1 Market scores. At $434.95, the ordinary analyst price tag focus on implies 20% upside possible. (See Palo Alto Networks analysis on TipRanks) 

Kidron wrote that Palo Alto defeat even the most optimistic estimates next its Q2 earnings report. The analyst was “impressed with the company’s ongoing transition to a software package and subscription product with powerful growth” seen in its Prisma Cloud and Cortex security platforms. 

He also noted that Palo Alto’s quick-expanding SaaS enterprise is accelerating billings yr-more than-12 months and that the company’s robust execution in changeover to cloud based software is “encouraging.” Specified the recent momentum, he thinks additional upside is predicted forward. 

Palo Alto Networks is hailed by Kidron as a international leader in the future-era safety answers market place. He thinks that with spending on stability passing expectations, earnings will go on to mature along with the increased customer base.  

Furthermore, Daniel Ives of Wedbush Securities argues that cybersecurity is in substantial desire thanks in portion to recent big cyber breaches. “We think the the latest SolarWinds and Colonial hack is adding to incremental offer flow and pipeline options in the industry and translating to the white hot progress that cyber security players are looking at across the board with bellwethers like Palo Alto front and centre,” the analyst commented.

So, what is actually the base line? Ives mentioned, “It appears Palo Alto is lastly starting off to get again its sea legs back and accelerate advancement in the field with its cloud Prisma system now actually setting up to catalyze the in general progress tale into the future 12 to 18 months. We consider this is a cloud cyber protection re-score story in motion and perspective Palo Alto’s stock as having a strong upward trajectory in excess of the next calendar year as the Street commences to fully appreciate the cloud transformation actively playing out.”

Also rating the stock a Purchase, Ives is even much more optimistic than Kidron about PANW’s advancement prospective clients provided his $450 cost target (24% upside opportunity).

Disclaimer: The viewpoints expressed in this short article are exclusively those of the showcased analyst. The content is supposed to be employed for informational applications only. It is very important to do your personal evaluation prior to building any financial investment. 

The views and viewpoints expressed herein are the sights and thoughts of the creator and do not always mirror people of Nasdaq, Inc.