TD Cowen analysts said in a note Tuesday that highlights of the Palo Alto Networks (NASDAQ:PANW) investor meeting included growth and profitability despite the current macro environment.
The analysts, who have an Outperform rating and a $295 price target on the stock, stated its bullish investment thesis on the stock is supported by platformization, the $8 trillion cost of cybercrime, and digital transformation.
"PANW's platformization strategy is successfully leveraging a hostile threat environment (and the cost of cyber breaches), digital transformation (including cloud migration, rising remote work, and SASE acceptance). Enhanced regulatory requirements are also driving demand," the analysts wrote.
"Deals, especially larger deals, are undergoing increased scrutiny, and sales cycles remain elongated. Still, PANW has adjusted to the harsher climate with increased controls," they added.
TD Cowen believes the company intends to continue investing in growth-generating innovation, especially in AI and Cloud, and that "any potential M&A that the company pursues would likely be product-focused with the goal of leveraging PANW's go-to-market."