Baird believes the recent weakness in Palo Alto Networks Inc NYSEPANW shares offer a buying opportunity as “we didn’t hear anything or see anything in the financials that dampens our positive opinion on shares of PANW.”
Palo Alto's Fall Post-Print
Palo Alto’s first-quarter revenue/non-GAAP EPS of $398 million/$0.55 is compared to consensus of $400 million/$0.53. Billings of $517 million was below consensus of $525 million.
For the second quarter, the company guided revenue/non-GAAP EPS to $426 million–$432 million/$0.61–$0.63 versus consensus of $439 million/$0.63.
However, the company stressed that its win rates remain high, but bigger deals and bigger companies require more time in their purchasing decisions. Palo Alto ended the quarter with more than 35,500 customers, adding over 1,500 customers.
The company expects second half performance to accelerate and reiterated FY 2017 non-GAAP EPS guidance of $2.75–$2.80. In its second half, Palo Alto is expected to see strong sales pipeline, easy compares, and increased traction with the Service Provider vertical.
“Our channel commentary continues to cite Palo Alto as the thought leader in a category of the market likely to undergo consolidation,” analyst Jayson Noland wrote in a note.
Noland maintains his Outperform rating and $175 price target on the
|Sep 2016||Rosenblatt||Initiates Coverage on||Buy|
|Aug 2016||Raymond James||Downgrades||Strong Buy||Outperform|
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