Rosenblatt Securities increased its price target on Palo Alto Networks to $415 from $355 on Tuesday, maintaining a Buy rating after the cybersecurity firm posted a strong fourth-quarter performance.
The upgrade follows Palo Alto Networks’ Q4 results, which exceeded both company guidance and market expectations. Total revenue rose 34% year-over-year to $3.41 billion, surpassing the company’s guidance range of $3.345 billion to $3.355 billion and the Street consensus of $3.35 billion. Non-GAAP earnings per share came in at $1.02, beating the top of the guidance range by four cents and the consensus estimate of $0.98.
Next-Generation Security Annual Recurring Revenue (NGS ARR) reached $9.10 billion, up 63% year-over-year, and exceeded the high end of guidance by $150 million. Net new NGS ARR totaled approximately $970 million, an increase of 98% from the prior year. Remaining Performance Obligations (RPO) stood at $21.2 billion, a 34% increase and the first time the figure crossed the $20 billion mark. The company also added about 220 net new platformizations in the quarter, bringing the total to roughly 2,500.
Palo Alto Networks’ stock has surged 90% over the past 12 months, with a market capitalization of $295 billion. The shares currently trade at a P/E ratio of 314, according to InvestingPro analysis, which indicates the stock is overvalued relative to its Fair Value estimate.
Other analysts maintained or raised their targets following the results. TD Cowen kept a Buy rating with a $400 target, Baird reiterated an Outperform rating with a $420 target, Evercore ISI maintained an Outperform rating at $415, Truist Securities reiterated a Buy rating at $435, and Morgan Stanley raised its target to $394 from $387 while keeping an Overweight rating.
