TD Cowen analyst Shaul Eyal has maintained their bullish stance on PANW stock, giving a Buy rating today.
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Shaul Eyal’s rating is based on a combination of factors, including expectations of a significant demand rebound for Palo Alto Networks’ next-generation security solutions. This positive outlook is supported by recent results from industry peers, indicating a strong market trend in the firewall refresh cycle. Eyal notes that Palo Alto Networks is likely to benefit from increased hardware firewall demand, contributing to its product revenue growth. Additionally, the company’s outsourced production partner, Flextronics, has reported substantial growth in its data center business, which further supports the anticipated demand surge.
Despite some concerns regarding federal spending uncertainties due to changes in the US administration, Eyal believes that the overall enterprise demand remains robust. While there may be a slight decline in federal revenue, which accounts for a small portion of Palo Alto Networks’ total revenue, the momentum gained from enterprise customers is expected to offset these concerns. Eyal’s analysis suggests that the company’s revenue estimates will likely reach the higher end of guidance, solidifying the Buy rating for Palo Alto Networks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $213.00 price target.