Palo Alto Networks Stock Has 17% Upside, According to 1 Wall Street Analyst
Shares of cybersecurity provider Palo Alto Networks (NASDAQ: PANW) struggled recently following a guidance cut from the company in February, but analysts at Argus Research still see brighter days ahead. Argus boosted its price target on the stock to $336 on Friday, which represents a potential upside over the next 12 months or so of about 17%.
Palo Alto saw weakness in its U.S. government-related business in its most recent quarter, with deals that were expected to close failing to do so. On top of that headwind, the company is shifting its sales strategy to pitch its platform as a way to reduce the number of vendors rather than go head-to-head with major competitors. This shift is pushing back billings and revenue recognition.
Argus isn't worried about these short-term headwinds. The stock researcher views Palo Alto as a solid player in a highly fragmented market, and Palo Alto's broad cybersecurity platform should be appealing to enterprise customers.
Source Fool.com
