This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Palo Alto Networks: 2013 Is Company's Big Year

NEW YORK (TheStreet) -- Palo Alto Networks (PANW), which made its debut as a public company in July, should be grabbing investors' attention in 2013.

The security specialist, which competes with Fortinet (FTNT) and Check Point (CHKP) in the next-generation firewall market, is positioned to grab market share, analysts say.

"We like Palo Alto Networks (PANW) as a way to gain exposure to Network Security, which we believe will be an IT category that outperforms in 2013," wrote Baird Equity Research, in a note released on Friday. "Importantly, the company is demonstrating an ability to broaden its footprint in Large Enterprise accounts (now the primary firewall in ~50% of deployments) and has noted good initial traction with subscription sales (additional features sold via SaaS)."

Baird rates Palo Alto "outperform."

Topeka Capital Markets on Friday initiated coverage of Palo Alto with a "buy" rating and a $65 price target.

"We expect Palo Alto to couple rapid product revenue growth and improving revenue visibility with its even faster growing subscription/service business with significant operating margin expansion that will fuel 90%+ EPS growth for the next two to three years," wrote Topeka analyst Frederick Ziegel, in a note. "Since shipping its first security appliance in 2007, Palo Alto has helped pioneer the emergence of the Next Generation Firewall (NGFW) market that will, over time, replace large portions of the firewall, Intrusion Prevention and URL filtering markets as we know them today, representing an estimated $10 billion revenue opportunity."

Palo Alto touts its PA-5000 products to protect data centers, large enterprise Internet gateways and service provider infrastructure, offering heavy-duty firewall technology, as well as threat prevention and Virtual Private Network (VPN) features.

Initially, the Silicon Valley-based firm felt plenty of love from investors, pushing its shares steadily upward following its IPO last year. After pricing its offering at $42 a share, the stock climbed more than 35% to reach a 52-week high of $72.61 in early September. Like many tech stocks, however, Palo Alto's shares retreated during the final months of 2012.

Stock quotes in this article: PANW, FTNT, CHKP, IBM, CSCO 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs