Goldman Sachs Reaffirms Buy on Palo Alto Networks, Inc. (PANW), Cites NGS ARR Growth

On Tuesday, analysts at Goldman Sachs reaffirmed their Buy rating for Palo Alto Networks, Inc. (NASDAQ:PANW), while keeping the price target unchanged at $231. The market sentiments for the company highlight its potential to meet or even exceed the projections for next-generation security annual recurring revenue (NGS ARR), driving the giant’s performance for at least the next two years.

With a market capitalization of $131.108 billion and revenue growth of around 14%, Palo Alto Networks, Inc. (NASDAQ:PANW) has exhibited phenomenal performance. The NGS ARR is considered an essential factor in determining the company’s success. The revenue metric captures core network security elements like advanced subscription services available with firewalls, virtual firewalls, and secure access service edge (SASE), along with the latest innovations like Cortex for security operations and Prisma AIRS for AI security.

A cutting-edge computer lab full of IT experts monitoring the security of multiple systems.

Analyst optimism stems from Palo Alto Networks, Inc. (NASDAQ:PANW)’s capabilities to enter new markets that would significantly drive NGS ARR growth. This confidence is backed by the company’s track record of boosting sales by extending new offerings to existing customers. Thus, regarding the fresh launches, we can expect something similar to happen.

Palo Alto Networks, Inc. (NASDAQ:PANW) is a leading cybersecurity provider offering network security, cloud security, and security operations. Founded in 2005 and headquartered in Santa Clara, California, the company serves a wide clientele, including businesses and government entities, across a range of industries, particularly manufacturing, healthcare, energy, and telecommunications.

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Disclosure. None.