Morgan Stanley ups Palo Alto target, sees attractive entry point

Morgan Stanley raised the firm’s price target on Palo Alto Networks (PANW) to $230 from $223 and keeps an Overweight rating on the shares. The firm sees a favorable entry point in the shares given the recent underperformance and its channel checks indicating “larger deals and stronger share gain” for Palo Alto. The stock can double in 4-5 years based on larger platform deals and share gain across multiple security categories, the analyst tells investors in a research note. Morgan Stanley believes upcoming catalysts for the stock include a better than expected fiscal Q2 report, accelerating remaining performance obligation growth and new long-term targets later this year.