Goldman Sachs Downgrades Palo Alto Networks (PANW) to Buy

Goldman Sachs downgraded Palo Alto Networks (NYSE: PANW) from Conviction Buy to Buy with a price target of $75.00 (unchannged). Analyst Greg Dunham admits the story is taking longer to play out.

"The stock has underperformed, which we believe was partly due to a 3Q13 shortfall in product revenue, concerns over execution given the multiple, and the overhang from the Juniper patent lawsuit, which was a bigger investor concern than we had anticipated," said Dunham.

"While we recognize that the growth story is taking longer to play out and there are questions over execution, our confidence in the fundamental position remains unchanged. We believe investors are underestimating the strength in PANW's subscription businesses and the longevity of growth as the market shifts to Next-Generation Firewalls," he said.

For an analyst ratings summary and ratings history on Palo Alto Networks (NYSE: PANW) click here. For more ratings news on Palo Alto Networks click here.

Shares of Palo Alto Networks closed at $43.15 yesterday.

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