choness/iStock via Getty Images
Palo Alto (NASDAQ:PANW) does not only report cash in hand and an increase in research and development. There is clearly significant demand for its products Prisma SASE and Prisma Cloud. In my view, if the company
Palo Alto: Prisma SASE And Prisma Cloud May Make The Price Spike Up
Summary
- Palo Alto Networks, Inc. is a global cybersecurity provider working with governments, service providers, and large enterprises.
- Palo Alto is very well positioned to receive investments and demands from clients. Take into account that the company is a leader in many Gartner Magic Quadrants.
- I would expect SASE customer adoption in the near future. Take into account that the numbers in Q1 2022 were quite impressive. We are talking about customer growth of 100%.
- With a WACC of around 8.5%, a terminal value of 30.95x, and net debt of approximately $510 million, the implied stock price would be equal to $1500.
- The implied stock price would be $767-$863. With traders currently buying shares at $501-$601, I believe that there is significant upside potential in the stock price.
I am a financial advisor with 10 years of experience in finance. Worked for several investment firms. I love DCF models, and dislike growth stocks.Disclaimer:The information available through Mr. TianShan is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by Mr. TianShan and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.Past performance is not necessarily a guide to future performance.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of PANW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.