Cybersecurity behemoth Palo Alto Networks (PANW) recently introduced a new network threat detection service, Cloud IDS (Intrusion Detection System), developed in collaboration with Alphabet’s (GOOGL) Google Cloud.
The Cloud IDS provides Google Cloud customers with powerful network security that has cloud-native network-based threat detection. Notably, Palo Alto and Google Cloud have been collaborating for the past three years to ensure the simple, secure journey of their customers to the cloud. (See Palo Alto stock chart on TipRanks)
Nikesh Arora, chairman and CEO of Palo Alto Networks, said, “Businesses are betting on the cloud for their most important initiatives, and one of the most fundamental factors to their success will be security.”
Earlier this month, Deutsche Bank analyst Patrick Colville reiterated a Buy rating on Palo Alto Networks, while raising the price target to $490 from $410, implying a 22.2% upside potential to current levels.
Colville is sure that in the era of “Mobile Cloud”, the most crucial cybersecurity solution will be secure access service edge (SASE), a framework that combines SD-WAN and network security. SASE also delivers applications and services from the cloud to edge.
Interestingly, Palo Alto dominates this space with its comprehensive SASE platform — Prisma Access. Although Cato Networks and Infoblox were the first to enter the SASE market, Palo Alto is the first public company to claim a stake.
The analyst also believes that the demand experienced by SASE vendors like Zscaler (ZS), Palo Alto and Fortinet (FTNT) in 2020 and so far this year, reflects a gradual long-term change in demand rather than an unexpected rise in spending caused by the pandemic.
Consensus among analysts is a Strong Buy based on 19 Buys, 1 Hold and 1 Sell. The average Palo Alto target of $438.52 implies 10.6% upside potential to current levels.
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