Analyst Shrenik Kothari of Robert W. Baird maintained a Buy rating on Palo Alto Networks (PANW – Research Report), retaining the price target of $230.00.
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Shrenik Kothari has given his Buy rating due to a combination of factors influencing Palo Alto Networks’ performance. The company’s federal sector traction and strong execution in enterprise license agreements (ELAs) are expected to bolster its financial results, despite challenges in its core firewall segment. Additionally, the firm’s valuation appears reasonable compared to its peers, with potential for upside as platform adoption increases.
Channel checks indicate that Palo Alto Networks is successfully navigating federal budget delays and is well-positioned to benefit from federal mandates. The company’s software-centric approach, combined with its AI capabilities and platform breadth, makes it a strong contender in a consolidating market. Moreover, the firm’s flexibility in deal structuring and its ability to win over key financial decision-makers further support the positive outlook, making it a compelling investment opportunity.
In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $230.00 price target.