Goldman Sachs Adds Palo Alto Networks (PANW) to Conviction Buy List, Sees 47% Upside

Goldman Sachs added Palo Alto Networks (NYSE: PANW) to its Conviction Buy with a price target of $80.00, suggesting 47% upside.

The firm said their research with PANW resellers, customers and partners gives them
confidence that PANW is successfully replacing legacy vendors as the core firewall and that install base growth is likely to inflect in 2013.

"We believe that the recent stock sell off (down 23% vs. up 4% for the Russell 3000 from September 10 - January 16) has created an attractive entry point for the fastest
growing public security vendor," the analyst said.

Fears of the January 16 lock-up release of 36 mn shares have now passed and believe 1Q13 results had a negative effect on sentiment as product growth decelerated from 70% yoy to 30%, "but we believe the slowdown is due to tough compares and expect acceleration."

Goldman expects 64% yoy growth in 2Q13, up from 51% in 1Q13.

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 $54.49 yesterday.

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