FTNT - Palo Alto Networks: Downside Risk Remains Elevated

2024-06-28 01:47:23 ET

Summary

• Palo Alto Networks' stock remains resilient despite headwinds, with its NGS portfolio supporting growth.
• Palo Alto is making greater use of financial incentives to drive, which has culminated in its recently introduced platformization strategy.
• Palo Alto's business will likely perform well over the long run, but competition is increasing, and Palo Alto's valuation leaves no room for error.

Palo Alto Networks' ( PANW ) (PANW:CA) share price has remained resilient in recent months, despite the business facing headwinds that may take longer to reverse than many expect. Palo Alto's NGS portfolio continues to perform well though, with the company’s large existing customer base providing an enormous cross-sell opportunity. Palo Alto is a strong company, meaning the stock will likely do well longer term. Its valuation is currently fairly extreme, though, given the deterioration in growth and soft demand environment....

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