Stifel Reiterates Buy on Palo Alto Networks (PANW) Following 4Q Report

August 31, 2016 10:38 AM EDT
Get Alerts PANW Hot Sheet
Price: $150.17 +1.10%

Rating Summary:
    40 Buy, 9 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
Trade PANW Now!
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.

Stifel reiterated a Buy rating and $210.00 price target on Palo Alto Networks (NYSE: PANW) following the company's 4Q earnings report. Total revenue increased 41.2% y/y to $400.8mn, exceeding the Street's estimate of ~$390.0mn. Non-GAAP EPS of $0.50 was in-line with estimates. Palo Alto expects 1Q17 total revenue of $396.0-402.0mn and non-GAAP EPS of $0.51-0.53 versus previous Street expectations of $401.8mn and $0.56, respectively.

Analyst Gur Talpaz commented, "Following the market close on Tuesday, August 30, Palo Alto Networks reported F4Q16 results that featured beats on both lines of revenue in addition to a substantial billings outperformance. Management accredited this period's performance to a combination of factors, including the ongoing shift away from standalone point solutions to tangible platforms like Palo Alto's that increasingly automate security functions within the enterprise through the company's natively integrated suite of solutions. The degree of traction that the company is experiencing with its platform is best communicated through its revenue per customer, which at $40.5K is roughly 5.5x the simple average of the company's primary competitors: CHKP, CSCO, and FTNT. Additionally, the company's push to a more SaaS-oriented financial model persisted during the quarter, as the percentage of total billings comprised by recurring subscriptions increased over 500bps from 59.3% in FY15 to 64.8% in FY16 while the number of attached subscriptions per device increased from 2.3 in F2Q16 to 2.6 in F4Q16. We reiterate our Buy rating."

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.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS View

Related Entities

Stifel, Earnings

Add Your Comment