The company can grow billings 30% through fiscal 2017 driven by 15% to 20% growth in product as share gains continue, analysts said.
Additionally, recurring billings have a growth of 35% to 40% as analysts estimate there are $500 million in renewals due in fiscal 2016 and $750 million due in fiscal 2017, analysts added.
Given these factors, analysts maintain their bullish outlook.
In Friday's morning trading session, shares are falling 0.46% to $178.
Palo Alto Networks provides enterprise security platform to enterprises, service providers, and government entities worldwide.
Separately, TheStreet Ratings team rates PALO ALTO NETWORKS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PALO ALTO NETWORKS INC (PANW) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."
Highlights from the analysis by TheStreet Ratings Team goes as follows: