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Palo Alto Networks became a leading cybersecurity provider through its next-generation firewall appliance, forever altering the requirements of this essential piece of networking security. The firm's portfolio grew to include diversified security subscriptions and support that attach to firewall appliances, as well as services such as protection and automated responses for cloud-based traffic and data, software-as-a-service applications, and endpoints. Looking ahead, we think Palo Alto's nascent…

Narrow-moat Palo Alto Networks' 28% year-over-year revenue growth in the third quarter was higher than our expectation and resulted in another record quarter. Firewall sales continued to showcase positive momentum with product sales growing by 28%. Subscription and support also grew by 28% and we expect Palo Alto's software platform approach of addressing various security touch points holistically to continue strong growth in this arena. We like that Palo Alto is seeking to address the…

Narrow-moat Palo Alto Networks was added to our Best Ideas list and currently trades at an attractive discount to our fair value estimate of $305 per share. We expect the firewall leader's 19% five-year revenue CAGR to outpace its peers by growing within high growth areas for cloud-based cybersecurity, analytics, and automation. Complexities associated with managing various software and hardware vendors and a dearth of cybersecurity talent leads our view that firms and government entities are…

<p>Along the way to taking the firewall market crown, we believe Palo Alto Networks developed considerable customer switching costs. We are raising our economic moat rating to narrow from none while sustaining our positive moat trend rating. We think Palo Alto expanding its subscriptions to cover hybrid-cloud security concerns with items such as analytics, automated response, and machine learning are growth catalysts to supplement its strong firewall offerings. We posit that significant operating…</p>

<p>Palo Alto Networks became a leading cybersecurity provider through its next-generation firewall appliance, forever altering the requirements of this essential piece of networking security. The firm's portfolio grew to include diversified security subscriptions and support that attach to firewall appliances, as well as services such as protection and automated responses for cloud-based traffic and data, software-as-a-service applications, and endpoints. Looking ahead, we think Palo Alto's nascent…</p>

United States

Palo Alto Networks, Inc. provides network security solutions. The Company offers firewalls that identify and control applications, scan content to stop threats, prevent data leakage, integrated application, user, and content visibility. Palo Alto Networks serves customers worldwide.

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