11:36 AM EST, 11/21/2024 (MT Newswires) -- Palo Alto Networks ( PANW ) delivered a strong performance in fiscal Q1, with better-than-expected year-over-year growth of over 20% in remaining performance obligations as the company successfully executed its "platformization strategy," Morgan Stanley said in a note Thursday.

Growth in next-generation security is supported by partnerships like International Business Machines's ( IBM ) QRadar migration pipeline and strong demand for Prisma Access Browser, the firm said.

Morgan Stanley said the company saw stabilization in firewall demand, with management expressing cautious optimism about a market upturn.

The firewall refresh cycle is expected to gain momentum, contributing to growth in fiscal 2026, the firm said.

"We see topline acceleration through FY25 given ramping product cycles, firewall refresh, easier comps and higher [next-generation security] mix," analysts said in the note.

The brokerage has an overweight rating on the company's stock with a price target of $446.

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