11:10 AM EDT, 08/20/2024 (MT Newswires) -- Palo Alto Networks' ( PANW ) "platformization," or bundling of products and services, is proving effective, leading to larger deals and notable expansion across its product lines, Morgan Stanley said in a note Tuesday.

"[Palo Alto Networks' ( PANW )] platformization strategy is successfully driving larger deals, multiple 8+ figure deals in FQ4 with strength across next-gen and firewall products," Morgan Stanley said, adding that the Cortex XSIAM, now the fastest-growing product in the company's history with bookings exceeding $500 million, was a standout performer.

The cybersecurity company exceeded expectations in its fiscal Q4 report, with billings up 11% year-over-year and total remaining performance obligations increasing 20%, while current RPO grew 17%, slightly below the previous quarter's 20%.

"[W]e think the trough is now behind us and see topline growth accelerating throughout [2025] driven by higher mix of Next-Gen Security sales, multiple product cycles (Cortex XSIAM, AI Security), easier comps and more stable firewall refresh," Morgan Stanley said.

Morgan Stanley maintained an overweight rating on Palo Alto Networks ( PANW ) and raised its price target to $390 from $360.

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