Palo Alto Networks slips even as BMO sees 45% upside on 'durable growth potential'
Sundry Photography

Palo Alto Networks (NASDAQ:PANW) shares slipped on Friday even as investment firm BMO Capital Markets raised its price target on the cyber security software company, highlighting the firm's confidence in Palo Alto's long-term growth outlook.
Analyst Keith Bachmann, who rates Palo Alto Networks (PANW) shares outperform, raised the price target to $650 from $615 and said shares could hit as high as $745, as the software mix grows and the company continues to deliver 20% year-over-year billings growth.
"As we begin to look more into [2023], we think investors have embedded expectations that product/firewall growth will slow materially," Bachmann wrote, adding that if the company simply meets estimates next year, that should move the stock higher. 
Palo Alto Networks (PANW) shares fell slightly less than 0.5% to $515.50 in premarket trading.
Looking ahead, Bachmann noted feedback from Palo Alto Network (PANW) channel partners has been "positive," leading the firm to project $2.35B in billings for this quarter, slightly ahead of the $2.33B consensus.
Annual recurring revenue is expected to be around $1.8B, compared to the company's target of $1.775B-$1.825B.
Last month, investment firm Morgan Stanley said Palo Alto Networks (PANW) shares were "materially mispriced," noting that its high free cash flow growth and increasing buyback should benefit investors.