UBS Reiterates Buy on Palo Alto Networks (PANW) Ahead of 1Q Release

November 21, 2016 10:21 AM EST
Get Alerts PANW Hot Sheet
Price: $143.98 +2.23%

Rating Summary:
    40 Buy, 10 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 19 | New: 13
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UBS reiterated a Buy rating and $165.00 price target on Palo Alto Networks (NYSE: PANW) ahead of the company's 1Q earnings report. PANW is scheduled to release results after market close on 11/21.

Analyst Brent Thill commented, "PANW is -8% YTD vs. NASDAQ's +6% with the stock +21% since F4Q results when PANW reported its lowest product beat magnitude since F1Q15, missed cash flow, and guided F1Q below Street. Despite the de-risking of FY17 product growth to 12-13% from Street's low-20% exiting F4Q, we believe the recent stock outperformance raises the bar into the Oct-Q where we see a modest beat-and-raise necessary for the stock to advance from here. Shares are trading at 6x EV/S, 14x EV/FCF on consensus CY17, where the combination of PANW's consistent execution, compelling growth-adjusted valuation, scope for shares gains, and unique mix of high-growth/high profitability supports our view of PANW as a core large cap growth holding in cybersecurity."

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 $161.35 yesterday.

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