Why Palo Alto Networks Shares Are Trading Higher Premarket

Analysts raised their price targets on Palo Alto Networks Inc PANW following Q2 results.
JPMorgan analyst Sterling Auty upgraded Palo to Neutral from Underweight with a PT of $620, up from $600 (30.4% upside).
Palo Alto is one of the cybersecurity companies well-positioned to compete for the cloud security opportunity, Auty said. The analyst says the stock's risk/reward setup appears more balanced after the recent pullback.
Citi analyst Fatima Boolani raised the PT on Palo to $600 from $585 (26.2% upside) and kept a Buy.
The analyst says the "objectively strong" fiscal Q2 results should bolster positive sentiment on the shares. Current valuation levels appear to be underpricing Palo Alto's low ~20%s growth trajectory and "pent-up" margin expansion, Boolani added.
KeyBanc analyst Michael Turits raised the PT on Palo to $643 from $615 (35.2% upside) and kept an Overweight.
The re-rating follows a solid Q2 beat across the board and guide above, consistent with his preview for a strong demand quarter, despite concerns regarding the potential impact of supply constraints on revenues/billings. Strength was broad-based across Strata, Prisma, and Cortex.
Barclays analyst Saket Kalia maintained Palo with an Overweight and raised the PT from $625 to $645 (35.6% upside).
Price Action: PANW shares traded higher by 7.28% at $510.12 in the premarket on the last check Wednesday.