Morgan Stanley resets PANW stock price target on demand trends

Palo Alto Networks (PANW) conscionable picked up different ballot of assurance from Wall Street, and it arrived astatine a engaged infinitesimal for the stock.

Shares closed astatine $247.55 connected May 18, adjacent a fresh all-time high reached days earlier.

For a banal that fell astir 20% over the anterior year, that plaything matters to anyone holding it.

The caller telephone gives investors thing factual to measurement earlier the institution opens its books.

Morgan Stanley raises its PANW terms people to $253 connected firewall and AI information request

Morgan Stanley analysts Meta Marshall and Keith Weiss raised their terms people connected Palo Alto Networks to $253 from $223 connected May 20, keeping an Overweight rating, TipRanks reports.

That implies astir 2% upside from the May 18 close, humble connected its ain but notable fixed however acold the banal has already run.

The slope pointed to strong demand crossed firewall refreshes, Prisma SASE, Cortex XSIAM and AI security arsenic the drivers.

A firewall refresh is the rhythm wherever companies regenerate aging web information hardware, and that replacement question is present feeding revenue.

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The steadfast based the caller people connected a higher 37x multiple of estimated 2027 escaped currency travel per share, up from 32x, a motion it present thinks investors volition wage much for each dollar Palo Alto generates.

Why the timing of the Palo Alto Networks telephone points consecutive astatine June 2 net

The upgrade is not random. Palo Alto Networks reports fiscal third-quarter results connected June 2 aft the marketplace closes, and analysts are positioning up of it.

Morgan Stanley expects the institution to bushed statement connected remaining show obligations, a measurement of contracted aboriginal gross that hints astatine demand the income connection has not yet recorded.

The slope sees RPO increasing person to 33% twelvemonth implicit year, supra the midpoint of management's ain guidance.

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It besides expects merchandise gross to onshore good supra the astir 25% growth absorption guided to.

Two caller prints acceptable the table: Fortinet grew merchandise gross 41% successful its archetypal 4th and lifted full-year guidance, per sec.gov, portion Cisco bushed connected networking.

Such beardown numbers from rivals often awesome that the full firewall marketplace is healthy, which works successful Palo Alto's favor.

How the Idira individuality motorboat reshapes the Palo Alto Networks maturation communicative

The bigger structural change sits successful individuality security, the enactment of controlling who and what tin entree a company's systems.