Wells Fargo Trims Valuation Range on Palo Alto Networks (PANW) Following Q1 Results, Outlook
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Wells Fargo lowers its valuation range on Outperform-rated Palo Alto Networks (NYSE: PANW) from $183 - $191 down to $172 - $180 following Q1 results issued Monday night.
The firm commented,
PANW reported mixed FQ1'17 results with slightly lower than expected revenue and billings vs. street estimates but better than expected EPS. In addition, FQ2 guidance was soft with revenue 2% below prior street forecasts and EPS fractionally light. The company cited longer sales cycles and macro uncertainty impacting trends in the quarter. Looking forward, guidance implies low single digit product revenue growth in FQ2 and a reacceleration to 18% growth in 2H'17. Management appeared confident in the 2H ramp in part due to an existing customer refresh and ramping trends in the service provider segment. We slightly reduced our estimates. We now forecast FY'17 / FY'18 billings of $2.47B / $3.08B vs $2.53B / $3.16B previously. We tweaked our FY'18 EPS ests to $3.72 from $3.76 previously. Lastly, we reduced our valuation range to $172 - $180/share from $183 - $191 previously - primarily due to a lower multiple assumption.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Summit Redstone Starts Palo Alto Networks (PANW) at Hold
- Drexel Hamilton Raises Price Target on Workday (WDAY) Following 3Q Beat
- Pivotal Research Downgrades Kroger (KR) to Hold
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change
Related EntitiesWells Fargo
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!