Palo Alto Networks (NASDAQ:PANW) added strength after Goldman Sachs initiated coverage with a buy rating. The investment firm said in a note to clients that Palo Alto was ahead of its rivals in key areas and could see its stock rise more than 20%.
Palo Alto will release its second-quarter figures next week.
According to The Motley Fool, “Palo Alto Networks has fairly deep pockets, too. It acquired nearly a dozen next-gen security start-ups from 2018 to 2021, and recently ended its brief acquisition hiatus to purchase Cider Security for $195 million in cash.
“As of this writing, Palo Alto has a market capitalization of $48 billion and cash and short-term investments of $3.8 billion. And it generated free cash flow (FCF) of more than $2.4 billion over the last year.
“As a result of its spending on research and acquisitions, Palo Alto thinks it can average double-digit revenue growth over the next few years. FCF generation should also remain high, giving the company the ability to make more acquisitions as needed and repurchase stock.”
PANW shares picked up 71 cents soon after the opening bell to $167.02.
