Oppenheimer Raised Price Target on Palo Alto Networks (PANW) Following Q3 Beat

Oppenheimer maintained an Outperform rating on Palo Alto Networks (NYSE: PANW), and raised the price target to $180.00 (from $175.00), following 3Q15 results. PANW reported revenue of $234.2M, beating the consensus estimate
of $223.4M. EPS of $0.23 beat consensus by $0.03.

Analyst Shaul Eyal commented, "PANW reported F3Q15 results that exceeded all financial metrics across all product categories and geographies. Providing the fuel for outperformance, Billings grew 55.7% YoY to $302.2M vs. the Street's $281.8M estimate. Numerous factors remain powerful drivers relating to our bullish thesis: 1) Continued acceptance of its high-end appliances (PA-7050 & 3060), 2) Stellar growth in recurring subscription revenue (contributing to better margins), 3) Upward revised guidance, 4) Continued scaling of the business supported by its commitment to exit FY16 with operating margins in the low-20% area. PANW has announced a small acquisition (CirroSecure) focusing on securing SaaS applications."

Eyal also added, "PANW guided F4Q15 to EPS of $0.24-$0.25 on revenue of $252-$256M. Our F4Q15E is raised to $252.9M/$0.25 from $233M/$0.24. For FY15, our estimates are raised to $897M/$0.83 from $866M/$0.78 (+50% YoY). For FY16 we estimate $1.23B/$1.70 (+37.6% YoY) from $1.14B/$1.47."

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 $160.65 yesterday.

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