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 known as the expansion the cybersecurity firm generated “impressed,” including that it has “broad-based power.”

Analyst Shrenik Kothari, who has an outperform score and $220 worth 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 purchasers at play.

“We consider that the corporate’s platform focus and execution have put it in an excellent place for long-term development,” Kothari wrote in a be aware to purchasers.

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

As well as, Kothari famous that the corporate’s federal enterprise is “one of many clear shiny 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 tricky comparability.

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

“All in all, the seller consolidation tendencies nonetheless robust 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 giant deal exercise.”