UBS analyst, Brent Thill, reiterated his Buy rating on shares of Palo Alto Networks (NYSE: PANW) stating that the company is the best house in a "changing neighborhood".

The analyst believes the company is both in "the later stage of the spending cycle" and experiencing a shift towards subscription vs upfront purchases. He stated that PANW's F4Q results and F1Q guide validated his perspective.

Taking a bold stance, the analyst stated the company has exited "Wave 1" of its hyper product-focused growth and is heading into a transition to "Wave 2": increasingly subscription-centric sales. This seems to imply that the change in revenue growth is long term in nature.