Analysts hailed Palo Alto Networks Inc (NASDAQ:PANW), a pure-play cybersecurity vendor that sells security appliances, subscriptions, and support to enterprises, government entities, and service providers.
- Wells Fargo analyst Andrew Nowinski initiated coverage with an Overweight rating and a price target of $700, suggesting a 32% upside.
- The analyst believes Palo Alto has "assembled the most comprehensive Zero Trust platform" and sees shares gains in Zero Trust driving top-line growth and operating and free cash flow margin expansion.
- Jefferies analyst Brent Thill raised the price target to $650 from $615 and kept a Buy as he adjusted his targets across the app, infrastructure, and security software spaces. The price target implies a 23% upside.
- Software underperformed the S&P 500 by 15% in 2021 as overall valuations contracted 10%, noted Thill.
- He thinks multiples in the space will continue to compress in 2022 as 80% of software names will likely decelerate with "digital digestion" coming out of the pandemic.
- Price Action: PANW shares traded higher by 4.84% at $529.28 on the last check Thursday.
