Palo Alto Networks Is Much More Than Just A Firewall, Has 38% Potential Upside According To This Analyst - Palo Alto Networks (NASDAQ:PANW)

Wolfe Research analyst Joshua Tilton initiated coverage on Palo Alto Networks Inc PANW with an Outperform rating and price target of $700.
Palo Alto is a "consensus long" as investors look to hide out in security names that can deliver both growth and free cash flow margins at an attractive valuation, Tilton told.
With his checks citing continued strong demand for firewall (even ex-supply chain benefits), he believes that at a 21x EV/CY23 base case, multiple investors could continue to seek refuge in this name.
He thinks PANW is so much more than just a firewall, and it's not getting credit for it.
His sum of the parts implied that the traditional firewall business accounted for 93% of the current valuation, suggesting that investors assigned very little value to the Next Generation Security portfolio.
Price Action: PANW shares traded higher by 1.94% at $508.77 on the last check Monday.