Palo Alto Networks (PANW): Aggressive Pricing Limits Upside And Leads To Weaker Than Expected Guidance - Baird

August 31, 2016 6:29 AM EDT
Get Alerts PANW Hot Sheet
Price: $138.76 +0.22%

Rating Summary:
    40 Buy, 10 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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Baird analyst, Jayson Noland, reiterated his Outperform rating of Palo Alto Networks (NYSE: PANW) after the company beat revenue by ~2% and met EPS. The analyst stated "Palo Alto reported a solid FQ4. Management cited an improved macro-economic environment. The FQ1 guide and F17 guidance commentary were mixed relative to expectations. Specifically, F17 product revenue guidance will cause some confusion. We remain buyers of the stock and continue to expect Palo to take share with its platform-based approach and hybrid SaaS model."

Revenue/non-GAAP EPS of $401 million/$0.50 compared to consensus of $390 million/$0.50. Billings of $572 million exceeded consensus of $562 million, up 45% YoY. Management guided revenue/non-GAAP EPS to $396-$402 million/$0.51-$0.53 versus consensus of $402 million/$0.56. For F17, management guided non-GAAP EPS to $2.75-$2.80 versus consensus of $2.65.

The price target of $175 is cut from $180.

For an analyst ratings summary and ratings history on Palo Alto Networks click here. For more ratings news on Palo Alto Networks click here.

Shares of Palo Alto Networks closed at $143.45 yesterday.

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