Scotiabank reaffirmed its Sector Outperform ranking and $225 value goal for Palo Alto Networks Inc. (NASDAQ:PANW) on Could 21, following the corporate’s monetary outcomes for the fiscal third quarter of 2025.
Analyst Patrick Colville praised the corporate’s efficiency, noting that the in-line F3Q Remaining Efficiency Obligations print was glorious, notably given the exterior financial pressures.
Colville emphasised that Scotiabank’s optimistic outlook for the firewall market in 2025 is per Palo Alto Networks’ product income progress. Since a variety of buyers base Palo Alto Networks’ valuation on FCF multiples, administration’s affirmation of its fiscal yr 2026 and 2027 targets was additionally taken as a optimistic signal.
Scotiabank regards Palo Alto Networks Inc. (NASDAQ:PANW) as some of the enticing long-term investments within the software program trade. The agency credit Palo Alto’s core operations’ resilience, the advantages of vendor consolidation, and the rising traction in the usage of Safe Entry Service Edge (SASE) options and cloud-based safety choices as key components contributing to this power.
Colville did, nonetheless, warning that the F4Q RPO steering suggests a possible impediment, as a big change in internet new RPO progress year-over-year is anticipated.
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Disclosure: None.