Morgan Stanley would be buying Palo Alto Networks amid this week’s selloff

Morgan Stanley analyst Hamza Fodderwala would be buying this week’s selloff in cloud network security providers, particularly Palo Alto Networks (PANW), that has been driven by Microsoft (MSFT) having announced their entry into Secure Service Edge, or SSE, or “SASE” minus SD-WAN. The firm thinks there are key structural reasons why Microsoft’s entry into the SASE market won’t materially impact cloud network security providers such as Palo Alto, Zscaler (ZS) and Cloudflare (NET) and highlights Palo Alto as most insulated from long-term risk given its broader platform. The firm has Equal Weight ratings on Zscaler and Cloudflare and an Overweight rating on Palo Alto shares.