Palo Alto rallies as Street praises analyst day

|About: Palo Alto Networks (PANW)|By:, SA News Editor

"We walked into Palo Alto Networks' (PANW +3.6%) analyst day positive on the consolidation opportunity in network security. We walk out thinking Palo Alto Networks has a very real shot at making the expansion into the $4B [endpoint security] market work," writes Morgan Stanley's Keith Weiss, reiterating an Overweight and $90 PT.

Weiss, who thinks Palo Alto's multiples still don't properly reflect its growth, says the next-gen firewall vendor "remains a top pick in software." His note comes a week after Palo Alto announced it's buying endpoint cybersecurity startup Cyvera for $200M.

In its analyst day slides (.pdf), Palo Alto estimated its total addressable market will grow to $19.5B in 2017 from $15.8B in 2014.