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Benzinga
Benzinga
Business
Anusuya Lahiri

Why Palo Alto Networks Shares Are Trading Higher Premarket

  • Analysts raised their price targets on Palo Alto Networks Inc (NASDAQ:PANWfollowing Q2 results.
  • JPMorgan analyst Sterling Auty upgraded Palo to Neutral from Underweight with a PT of $620, up from $600 (30.4% upside). 
  • Palo Alto is one of the cybersecurity companies well-positioned to compete for the cloud security opportunity, Auty said. The analyst says the stock's risk/reward setup appears more balanced after the recent pullback.
  • Citi analyst Fatima Boolani raised the PT on Palo to $600 from $585 (26.2% upside) and kept a Buy. 
  • The analyst says the "objectively strong" fiscal Q2 results should bolster positive sentiment on the shares. Current valuation levels appear to be underpricing Palo Alto's low ~20%s growth trajectory and "pent-up" margin expansion, Boolani added.
  • KeyBanc analyst Michael Turits raised the PT on Palo to $643 from $615 (35.2% upside) and kept an Overweight.
  • The re-rating follows a solid Q2 beat across the board and guide above, consistent with his preview for a strong demand quarter, despite concerns regarding the potential impact of supply constraints on revenues/billings. Strength was broad-based across Strata, Prisma, and Cortex.
  • Barclays analyst Saket Kalia maintained Palo with an Overweight and raised the PT from $625 to $645 (35.6% upside).
  • Price Action: PANW shares traded higher by 7.28% at $510.12 in the premarket on the last check Wednesday.
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