Goldman Sachs Reiterates Buy Rating on Palo Alto Networks (PANW)

Goldman Sachs analyst Gabriela Borges reiterated a Buy rating and $425.00 price target on Palo Alto Networks (NASDAQ: PANW)

The analyst comments "We deconstruct Palo Alto's disclosures on attached subscriptions to estimate how much attached subscriptions are contributing to the NGS ARR growth algorithm. We believe Palo Alto is 3 years in to what we believe will be a ~10 year process of upgrading its attached subscriptions to advanced SKUs (which are classified as NGS ARR). The process of upgrading to advanced SKUs is largely mechanical upon renewal, in our view, and presents to customers as a pricing increase tied to better security efficacy. Our assumptions on NGS ARR coming from advanced attached subscriptions, together with reasonable growth in other product cycles such as Cloud and Cortex, suggests that there may be 7-21% upside to Street estimates for NGS ARR over the next 3 years."

For an analyst ratings summary and ratings history on Palo Alto Networks click here. For more ratings news on Palo Alto Networks click here.

Shares of Palo Alto Networks closed at $337.94 yesterday.

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