Palo Alto Networks could grow about 40% from here, as the cybersecurity company builds its next-generation product suite, according to Wolfe Research. Analyst Joshua Tilton began reporting on Palo Alto Networks with better ratings, saying that investors should take a closer look at the rapidly growing next-generation security (NGS) portfolio. “[If] One takeaway from this launch is that we believe PANW is more than just a firewall and it doesn’t get the credit for it. In fact, what if we told you that the sum of our parts implies that the traditional firewall business accounts for 93% of current valuation (which would be 100% at FTNT’s valuation). ), suggesting that investors are assigning very little value to the Next Generation Security Portfolio? “The analyst believes revenue from the company’s Cortex, Prisma Cloud, and Prisma Access businesses could deliver strong revenue growth through fiscal 2024. “In short, in a market where investors may not be buying new names, we are here to tell you that he continues to invest in PANW for the firewall business, but we really think you should add to the position his company for what’s next … dominates the entire platform,” he continued. The company also remains attractive to me as investors because it generates both growth and a free cash flow margin in an attractive price tag, the note reads. “With our testing showing continued strong demand for firewalls (even off-supply chain interests), we believe the base case is Based on 21x EV/CY23 FCF, many investors may continue to seek refuge in the name,” Tilton wrote in a note Sunday.The analyst sets a $700 price target on Palo Al. to Networks, implying a roughly 40% increase from Friday’s closing price of $499.10. Shares rose slightly in pre-market trading on Monday. — Michael Bloom of CNBC contributed to this report.
