UBS Cuts Price Target on Palo Alto Networks (PANW) to $160 Following 1Q

November 22, 2016 8:28 AM EST
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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UBS maintained a Buy rating on Palo Alto Networks (NYSE: PANW), and cut the price target to $160.00 (from $165.00), following the company's 1Q earnings report. PANW reported product revenue of $164M, below the Street's $167M estimate.

Analyst Brent Thill commented, "On the heels of a tough set-up with shares having moved 20%+ into the print, weak product, a first-ever billings miss, and below consensus guide are likely to keep the stock sideways in the short-term. The 2nd set of disappointing results from PANW in the last 3Qs, we think this is likely to raise fears of deeper-seated issues (in spite broader industry, peers witnessing similar product growth decel, sales elongation, and slipped deal dynamics) and heighten skepticism on the implied back-end loaded growth. Valuation after-hours is pointing to 6x NTM EV/S and 15x NTM EV/FCF on lowered UBSe, where we see downside at ~$115 assuming trough multiples of 4x NTM EV/S / 12x NTM EV/FCF with upside to our $160 price target assuming 7x NTM EV/S and 18x NTM EV/FCF if PANW can successfully shore up execution out of F2Q."

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 $161.06 yesterday.

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