Why Are Palo Alto Networks' Shares Trading Higher Today?

Why Are Palo Alto Networks' Shares Trading Higher Today?
  • Pure-play cybersecurity vendor Palo Alto Networks Inc's PANW shares traded higher by 11.4% at $415.30 in the premarket session on the last check Tuesday driven by its Q4 beat and FY22 guidance lift.
  • Morgan Stanley analyst Keith Weiss raised the price target to $550 from $515, implying a 47.6% upside, and reiterated an Overweight rating.
  • Palo Alto's shift towards Cloud-based software security solutions accelerated 34% year-over-year billings growth in Q4, beating FY22 consensus guidance.
  • BTIG analyst Gray Powell raised the price target on Palo Alto Networks to $509 from $460, implying a 36.6% upside, and maintained a Buy.
  • Deutsche Bank analyst Patrick Colville raised the price target to $515 from $490 and kept a Buy.
  • Barclays analyst Saket Kalia raised the price target to $535 from $500, implying a 43.6% upside, and kept an Overweight. 
  • Kalia expects the billings to grow high teens through FY24, with revenue growth in the low 20s and 100 bps per year margin expansion. After three straight quarters of beats and raises, "it is starting to feel like a more consistent business, Kalia notes.
  • Summit Insights analyst Srini Nandury raised the price target to $500 from $425, implying a 34.2% upside, and maintained a Buy. 
  • Nandury sees a fundamental shift in the way enterprises are buying security which is benefiting Palo Alto. The company beat estimates on all metrics and provided a "very bullish" outlook, Nandury notes.
  • Piper Sandler analyst Rob Owens raised the price target to $500 from $450 and kept an Overweight.
  • Jefferies analyst Brent Thill raised the price target to $450 from $420, implying a 20.8% upside, and reiterated a Buy.
  • Baird analyst Jonathan Ruykhaver raised the price target to $480 from $425, implying a 28.8% upside, and maintained an Outperform.
  • JMP Securities analyst Erik Suppiger raised the price target to $455 from $430, implying a 22.1% upside, and reiterated an Outperform.
  • RBC Capital analyst Matthew Hedberg raised the price target on Palo Alto Networks to $475 from $445, implying a 27.5% upside, and reiterated an Outperform.
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