2024-05-25 10:00:00 ET
Summary
- PANW's platformization has already generated robust engagements and growing remaining performance obligations, with revenue recognition merely delayed.
- The SaaS company continues to report impressive profitability metrics as well, exemplifying its improved operating scale despite the change in payment terms.
- However, the massive fluctuation in forward guidance and decelerating top-line growth raise concerns, with PANW notably expensive compared to its high-growth SaaS peers.
- Combined with the elevated insider selling at these peak levels and minimal upside potential, we are initiating a Hold rating here, with the stock likely to trade sideways ahead.
The PANW Investment Thesis Seems Expensive As Revenue Growth Decelerates
Palo Alto Networks (NASDAQ: PANW ) is a global cybersecurity provider of comprehensive zero trust solutions for enterprise users, networks, clouds, and endpoints markets through the use of artificial intelligence and automation.
The company operates through the usual SaaS approach, with Subscription/ Support revenues comprising 77.1% (+1.9 points YoY) of its FY2023 revenues....
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Palo Alto Is Still Expensive After The Deep Pullback - Initiate Hold