Investing.com — Morgan Stanley highlighted an “increasingly attractive entry point” for Palo Alto Networks Inc (NASDAQ:) driven by larger platform deals, share gains across security categories, and promising growth catalysts.
PANW shares were trading up around 2% at $180 before the opening bell.
The brokerage projects the stock could double within 4-5 years, driven by a 17% compound annual growth rate in free cash flow per share and more than 20% EPS CAGR.
Recent developments, including a $100 million-plus deal with the UK Home Office, underscore PANW’s growing influence. Morgan Stanley (NYSE:) noted that bookings growth (RPO) could accelerate throughout the year, with revenue and billings following suit as early platformization challenges fade.
“With just 13% share in directly addressable markets” Morgan Stanley sees room for substantial growth, forecasting a doubling of revenue and free cash flow by FY30. Upcoming catalysts include potential long-term targets and an Investor Day this fall.
