Palo Alto Networks (PANW.US) reported strong results, winning praise from Wall Street.
1min read Shares of Palo Alto Networks (PANW.US) rose 6.50% to $365.687 after the company reported better-than-expected fourth-quarter fiscal 2024 results and provided guidance for fiscal 2025, winning praise from Wall Street analysts.
KeyBanc Capital Markets maintained an “overweight” rating on Palo Alto and raised its target price to $400 from $380.
The analyst team led by Eric Heath said the company’s fourth-quarter results and fiscal 2025 guidance were in line with expectations. Regarding the CrowdStrike breach, Palo Alto’s management did not say it had an impact on its fourth-quarter bookings, but it is expected to help its Cortex XDR growth momentum.
The Heath team remains bullish on Palo Alto’s leadership in multiple strategic markets and its position as a security spending consolidator.
Royal Bank of Canada Capital Markets maintained an “overweight” rating on Palo Alto and raised its target price to $410 from $390.
The analyst team led by Matthew Hedberg said: “We believe the quarter’s performance puts a strong exclamation point on fiscal 2024 and that this momentum will carry into fiscal 2025.”
Analysts said they would like to hear about the acceleration in the second half of fiscal 2024, progress on platforming and guidance on the transition from billings to remaining performance obligations (RPOs). The Hedberg team added that the initial fiscal 2025 guidance was slightly above expectations and should set an optimistic tone for further upside.
JMP Securities maintained a “run rate” rating on Palo Alto and a target price of $380.
Analyst Trevor Walsh and his team maintained the rating and target price on the stock after Palo Alto reported “satisfying fiscal 2024 fourth-quarter results.”
Analysts said the quarter’s results marked a successful conclusion to fiscal 2024. Palo Alto CEO and Chief Executive Officer Nikesh Arora said: “I know that six months ago, our platforming strategy caused a lot of noise. I just want to say that I wish we could have started down this path sooner.”
Shares of Palo Alto rose 6.50% at the time of writing.
