Palo Alto Networks (PANW) is poised to benefit from growing demand to protect quantum assets against malware as it has laid a "solid" foundation to deploy quantum computing initiatives, Wedbush Securities said in a note Wednesday.

The brokerage said there is a rising need for quantum protection capabilities as quantum computers are improving and approaching the point of being able to break most encryption forms designed to protect data.

Palo Alto is already getting ahead of providing protection for quantum computing, with its partnership with IBM (IBM) in November providing the first step to make sure enterprises are preparing for quantum-safe environments, Wedbush said.

This placed Palo Alto at the "forefront of the next stage of technological transformation," according to the note.

Wedbush reiterated Palo Alto's outperform rating and $225 price target.

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