D.A. Davidson raised Palo Alto Networks’ price target to $310 (16.6% upside potential) from $290 and reiterated a Buy rating ahead of the cybersecurity solution provider’s 4Q results on Aug. 24.D.A. Davidson analyst Andrew Nowinski wrote in a note to investors on Tuesday that he expects Palo Alto’s (PANW) 4Q results to exceed current guidance mainly driven by large ELA [ Enterprise License Agreement] deals. Nowinski said that “exceptionally strong” US federal demand, the transition to ARR [Annual Recurring Revenue] business model, and continuous market share gains are other positives.A stronger need for security solutions amid the coronavirus-led remote working environment is driving demand for Palo Alto’s security platform. In 3Q, the company’s revenues increased by 20% to $869.4 million and beat analysts’ expectations of $829 million. Adjusted EPS of $1.17 also surpassed Street estimates of $0.91. During the quarter, it added over 2,500 new customers and increased wallet share with existing customers.Earlier this month, BTIG Research analyst Gray Powell upgraded the stock to Buy from Hold noting that the company’s sales execution for firewall products had improved and demand remained strong through July. Powell also expects 4Q results to exceed estimates and maintain high teen growth in the second half of 2020. Powell kept the stock's price target unchanged at $313 (17.8% upside potential).Overall, PANW scores a Strong Buy analyst consensus. The average price target of $269.85 implies upside potential of a modest 1.5% to current levels. (See PANW stock analysis on TipRanks).Related News: Bulls vs Bears on Micron: Which Side Should Investors Take? Barclays Cuts Micron’s PT On Chip Demand Woes Micron Drops 5% As CFO Warns 1Q Sales Could Miss Guidance More recent articles from Smarter Analyst: * Agilent Falls In Pre-Market As Quarterly Sales Miss; Oppenheimer Says Hold * Australia Inks Deal With AstraZeneca For Supply Of Covid-19 Vaccine Candidate * Verona Up 10% On Lung Trial Kick Off; Analyst Initiates Stock At ‘Buy’ * Etsy Declares $650M Convertible Note Offering; Stock Up 200% YTD
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