11:58 AM EST, 11/18/2024 (MT Newswires) -- Palo Alto Networks ( PANW ) probably will deliver "solid" fiscal Q1 results on Wednesday, BofA Securities said Monday in a report.

Next-generation security annual recurring revenue probably will grow 35% with firewall product orders "likely showing signs of recovery," the report said.

The company's free cash flow margin has "limited upside" amid management plans to cap or scale down vendor financing, BofA said.

"The US federal segment might be a directional headwind, yet any impact might be limited given management's previous note that it was excluded from guidance," the report said.

BofA kept its neutral rating on Palo Alto Networks ( PANW ) and maintained the $400 price objective with the stock "priced for near perfection."

Shares of Palo Alto Networks ( PANW ) rose 0.2% in recent Monday trading.

Price: 387.80, Change: +0.80, Percent Change: +0.21