Palo Alto Networks rises as Baird says Q1 development was ‘spectacular’ (NASDAQ:PANW)

Palo Alto Networks (NASDAQ:PANW) was among the many tech sector’s standouts on Friday as funding agency Baird referred to as the expansion the cybersecurity firm generated “impressed,” including that it has “broad-based power.”

Analyst Shrenik Kothari, who has an outperform ranking and $220 value goal, famous that the corporate’s pipeline for safe entry service edge and cloud safety continued to point out that there’s a consolidation theme for shoppers at play.

“We imagine that the corporate’s platform focus and execution have put it in a superb place for long-term development,” Kothari wrote in a observe to shoppers.

Palo Alto Networks (PANW) shares rose greater than 6% to $166.29, although off their finest ranges of the session following earlier reward.

As well as, Kothari famous that the corporate’s federal enterprise is “one of many clear vibrant spots,” including that latest checks confirmed an important mixture of federal deal closings occurring this yr in comparison with the previous, “demonstrating safety momentum.”

Palo Alto’s (PANW) 27% year-over-year development in billings was deemed “spectacular,” particularly after coming off a troublesome comparability.

Trying forward, Kothari identified that some cybersecurity distributors have began to see larger scrutiny on offers, however the points are sector particular, with know-how, shopper merchandise and retail being extra impacted than utilities, oil, protection and people within the public sector.

“All in all, the seller consolidation traits nonetheless sturdy and safety priority inside price range priorities stay key drivers,” Kothari defined.

Final week, Loop Capital upgraded Palo Alto Networks (PANW), noting “indicators of accelerating momentum pushed by a rise in massive deal exercise.”