Palo Alto Networks’ Bullish Stance Reiterated at Oppenheimer

Oppenheimer analysts provided their views on Palo Alto Networks, Inc. (NASDAQ:PANW), highlighting it as a top pick for 2023.

The analysts’ bullish stance is predicated on their belief that the company (1) has a long runway for its Gen4 firewall refresh, where it continues to gain share, (2) is successfully shifting to next-gen security (NGS) technologies such as Cloud (CNAPP)/SASE/XDR in a bid to deliver an end-to-end cybersecurity platform, (3) will continue to deliver strong operating performance with over 30% free cash flow generation.

According to the analysts, these elements make Palo Alto one of the few tech companies that have growth and value characteristics, an attractive combination during periods of IT spending constraints. The analysts maintained their Outperform rating and $220 price target.