Analysts expect Palo Alto Networks Inc (NASDAQ:PANW) to report fourth-quarter earnings per share of $1.41 on revenue of $2.162 billion Monday after the market closes.

Dan Ives and Wedbush view the company's transition to a platformization strategy as a key business driver, which will be crucial for its growth in FY25 and beyond.

Although this shift presents some near-term challenges, Ives and Wedbush are confident in PANW's long-term potential, maintaining an Outperform rating with a $375 price target.

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Wedbush notes the upcoming earnings report may not deliver major surprises, but it will underscore the foundation PANW is building for FY25.

The company's guidance and revenue estimates of $2.16 billion are seen as achievable, with billings expected between $3.43 billion and $3.48 billion.

Wedbush says a key focus will be on the growth of Next-Generation Security (NGS) Annual Recurring Revenue (ARR), which is crucial for reaching PANW's $15 billion ARR target by 2030.

The Street expects FY25 revenues of $9.11 billion, a 14% year-over-year growth, which Ives and Wedbush believe is attainable. Despite some near-term sales headwinds, such as those caused by the recent CrowdStrike outage, PANW is expected to benefit in the long run.

Ives and team continue to view PANW as a top cybersecurity pick for the next 12-18 months.

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