Mizuho Reiterates Outperform Rating on Palo Alto Networks (PANW)

Mizuho analyst Gregg Moskowitz reiterated an Outperform rating and $210.00 price target on Palo Alto Networks (NASDAQ: PANW).

The analyst commented: "PANW reported a clearly better than expected F4Q. Revenue growth of 16% Y/Y was nicely above our and the Street's ~14% estimate. Product growth of 19% Y/Y easily surpassed the Street's +15% Y/Y forecast, and Subscription/Support revenue (+15% Y/Y) was modestly above. Moreover, RPO grew an impressive 24% Y/Y, easily beating guidance of 19%-20% growth. FY26 guidance was much better than feared, and nicely above buy-side expectations. And last but not least, mgmt projected stronger than expected FY28 FCF margins of 40%+, inclusive of the pending CyberArk (CYBR, Outperform) acquisition.

More broadly, we remain bullish on PANW's improving mix shift toward higher-growth recurring revenue, and we reiterate our view that PANW clearly possesses the strongest array of cloud assets among traditional network security vendors. And re: CYBR, we believe PANW is acquiring a phenomenal asset at a very reasonable price tag. We reiterate our Outperform rating and $210 PT."

For an analyst ratings summary and ratings history on Palo Alto Networks click here. For more ratings news on Palo Alto Networks click here.

Shares of Palo Alto Networks closed at $176.17 yesterday.

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