/Women%20sitting%20on%20roling%20chair%20in%20front%20of%20computer%20monitors%20by%20ThisisEngineering%20via%20Unsplash.jpg)
Shares of cybersecurity giant Palo Alto Networks (PANW) ended more than 1% higher in yesterday's trading session after Citi reiterated its “Buy” rating on the stock with a price target of $400, a possible upside of 21% from current levels. PANW stock is doing even better today as it is up over 6% in afternoon trading.
Sounding out that it's Idira unit, or what was formerly known as CyberArk, might see improvement in margins, Citi further said, “Net-net, while profitability expansion has near-term hurdles relative to peak 50x NTM EV/FCF/80x NTM P/E (~20/30-turn premium to 5-year median), IR’s constructive tone on core business trends—validated by our early checks and recent CIO survey readthroughs—and our positively-skewing new organic NNARR sensitivity analysis (extrapolating recent platformization trends, assessing NNARR bridge by-segment) give us confidence revs/NGS ARR could see steady positive revisions and power med-term operating leverage."
