How Analysts View Palo Alto Networks Post 2021 Annual Day?

Palo Alto Networks Inc PANW guided to $8 billion in FY24 revenue, implying a 23% compound annual growth rate from FY21, and $10 billion in FY24 billings, indicating a 22% CAGR from FY21 at its 2021 Annual Day meet.
Analysts have lapped up Palo Alto Networks, raising their price targets, implying an upside between 11%-29%, keeping their ratings unchanged.
Palo Alto continues to show traction in its platform strategy and success in modernizing the three core business units with software-based offerings that complement one another, JMP Securities noted, which sees a 15.5% price upside.
The company's 22% billings growth outlook is better than expected, and its capital allocation plan indicates fewer acquisitions and more buybacks, Barclays noted, which sees a 29% price upside. Morgan Stanley sees a 26% upside.
Mizuho remained remains "very constructive on the improving mix shift" toward higher-growth recurring revenue and reiterated the view that Palo Alto "easily possesses the strongest array of cloud assets among traditional network security vendors." Mizuho and RBC Capital see a 17.6% price upside.
Northland and Stifel noted that an updated total addressable market view "implies plenty of room" for 20%-plus growth.
Palo Alto continues to be a key beneficiary of recent cyberattacks, a "robust" product refresh cycle, and continued success in next-generation security, Truist noted.
Price Action: PANW shares traded higher by 1.52% at $483.84 in the market session on the last check Tuesday.

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