Analysts at major Wall Street research firms on Thursday published positive notes concerning two of the Club’s technology holdings. We also got new details on Apple ‘s (AAPL) long-rumored mixed reality headset. Here’s a breakdown of the news, and how the headlines impact our investment approaches to the companies. Morgan Stanley likes PANW PANW YTD mountain Palo Alto Networks’ year-to-date stock performance. The news: The recent weakness in Palo Alto Networks (PANW) shares is an opportunity to buy, Morgan Stanley analysts told clients Thursday. Over the past month, the cybersecurity stock declined about 5%, the firm noted, compared with a roughly 3% advance in the tech-heavy Nasdaq . Analysts said Palo Alto’s underperformance is likely due to a wary investor base ahead of its fiscal third-quarter earnings, set to be released after the close Tuesday. However, Morgan Stanley is less cautious about the results, saying industry checks “have been largely positive with the vast majority of PANW partners in line or above plan … and a competitive positioning that continues to get stronger.” Despite concerns around overall tech spending, Morgan Stanley said that companies still want to streamline their cybersecurity spending. “Demand for vendor consolidation in security is higher than ever and PANW is a leading beneficiary.” Morgan Stanley maintains a $255-per-share price target and overweight (buy) rating. Some Wall Street research Thursday struck a more cautious tone toward Palo Alto. Mizuho said its industry checks were “mixed” for the first time in “many quarters.” The analysts there lowered their price target to $220 per share from $235, accordingly. While Jefferies analysts maintained their long-term optimism, they said near-term upside for PANW may be limited, citing tougher year-over-year comparisons and macroeconomic uncertainty. The Club’s take: We share Morgan Stanley’s optimism around Palo Alto Networks and view this recent pullback in the stock has…
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