Palo Alto Networks (PANW) is expected to report strong fourth-quarter earnings, with analysts predicting earnings per share of $1.41 on revenue of $2.162 billion. While the upcoming report might not reveal major surprises, it will highlight the foundation PANW is building for future growth.
Wedbush Securities, a leading financial firm, views the company’s transition to a platformization strategy as a key business driver, crucial for its growth in fiscal year 2025 and beyond. This strategic shift, although presenting some short-term challenges, is expected to pay off in the long run, with Wedbush maintaining an Outperform rating and a $375 price target for PANW stock.
The firm believes that PANW’s guidance and revenue estimates of $2.16 billion are achievable, with billings projected between $3.43 billion and $3.48 billion. A key focus area will be the growth of Next-Generation Security (NGS) Annual Recurring Revenue (ARR), crucial for reaching PANW’s goal of $15 billion ARR by 2030.
Wall Street analysts anticipate FY25 revenues of $9.11 billion, representing a 14% year-over-year growth, a target that Wedbush believes is attainable. Despite some short-term sales headwinds, such as those caused by the recent CrowdStrike outage, PANW is expected to emerge stronger in the long term.
Wedbush continues to view PANW as a top cybersecurity pick for the next 12-18 months, emphasizing its potential for continued growth and success in the evolving cybersecurity landscape.
