Jefferies maintains Buy on Palo Alto Networks, stock target at $365

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Jefferies maintains Buy on Palo Alto Networks, stock target at $365
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On Tuesday, Jefferies reaffirmed its Buy rating on Palo Alto Networks (NASDAQ: PANW ) shares with a price target of $365.00. This endorsement comes as Palo Alto Networks, listed on NASDAQ :PANW, welcomed Dan Campbell as the new President of North American Sales in February.

Campbell's previous role as President of Arrow ECS, North America, is seen as a strategic advantage given current concerns about Palo Alto Networks' new platformization strategy and its potential effects on channel commissions.

The firm acknowledges the positive aspects of the appointment, citing Campbell's experience as beneficial amidst worries that the company's shift in strategy might lead to reduced Total Contract Value (TCV) and, consequently, lower commissions for sales channels. The new President's background is expected to help navigate these channel concerns effectively.

However, the firm also notes that historically, a change in sales leadership can signal more adjustments within the company. The transition may lead to some temporary disruptions as the new team establishes itself.

Jefferies' commentary suggests that while the appointment is favorable, it could come with short-term challenges as the new sales head implements changes.

Jefferies' stance on Palo Alto Networks remains unchanged despite these potential disruptions. The firm's $365.00 price target indicates a continued confidence in the company's performance and its strategic direction under the new sales leadership.

Palo Alto Networks has not publicly commented on the appointment of Dan Campbell or the potential impacts of the new platformization strategy on its sales channels.

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