Kim Bolton Palo Alto Networks PANW-N PAST TOP PICK Mar 26, 2025

Cybersecurity is a mega-trend long term. Bit expensive at 50x forward PE for 13% growth, and that growth rate has come down. That's why he sold. Great channel of higher highs and higher lows.

They report Tuesday. It has a habit of falling after reporting earnings, so wait until after the report.

Reasonably priced. Safer than CRWD, though slower-growing. Overall security software space is very attractive -- one of the most defensive parts of the software industry.

Cybersecurity is the utility of technology, a necessity. Not economically sensitive, so won't get a big boost in a strong economy. But it's very consistent.

He could own this, but doesn't. Instead, he owns CRWD and a cyber ETF. Expectations in the group are high, and the multiples aren't cheap. He doesn't actually have a ton of tech exposure right now, having moved to more economically sensitive names.

CRWD and PANW are volatile, but demand is so strong for cybersecurity that these are long-term winners.

Really likes it, especially because they bought CYBR (one of his stocks ;)  Difficult call at this point. His price target is $185, and today it's trading ~$177. Then it will have to digest CYBR (still needs both regulatory and shareholder approval). China may use this as a pawn in negotiations. 

For new $$, he'd choose ANET instead.

Likes their purchase of CyberArk which will be accretive.

Cybersecurity recently is seeing a modest correction over a feeling that IT spending will pull back. This is puzzling, but the cyber threat remains and there's a need for security. We need strong guidance from PANW to see positive momentum. They report today.

The Cyberark acquisition will be accretive.