Berenberg Sees 6-14% FY30 Revenue Upside, Cites 1,550 Platformisations for Palo Alto Networks
Berenberg initiated coverage of Palo Alto Networks with a Buy rating and $215 target, noting shares trade about 30% below 2024-25 average multiple despite sustained organic growth. The firm forecasts 6-14% upside to FY30 revenues as 1,550 completed platformisations accelerate toward a 2,500-3,500 target by 2030.
1. Coverage Initiation and Valuation Thesis
Berenberg kicked off coverage of Palo Alto Networks with a Buy rating and $215 price target, highlighting a 30% valuation discount to its 2024-25 average multiple despite consistent organic growth. The firm attributes the de-rating to the “AI eats software” narrative and views the current sell-off as an attractive entry point.
2. Platformisation Strategy and Growth Forecast
Palo Alto Networks has completed 1,550 platformisations to date, up from 850 in mid-2024, and aims for 2,500 to 3,500 by fiscal 2030. Berenberg projects this momentum will drive a 6-14% increase in FY30 revenues, supported by a 119% net revenue retention rate and higher spend from multi-platform customers.
3. Strategic Acquisitions and TAM Expansion
The recent acquisitions of identity security firm CyberArk for $19 billion and observability platform Chronosphere for $3 billion expand Palo Alto’s addressable market to an estimated $206 billion, reinforcing its integrated security platform strategy and long-term growth prospects.