Imperial Capital Sees Continued Near-Term Expansion for Palo Alto Networks (PANW); Raises Price Target to $205

Imperial Capital reiterated an Outperform rating on Palo Alto Networks (NYSE: PANW), and raised the price target to $205.00 (from $200.00), following the company's 1Q earnings report. PANW achieved strong growth at scale in 1Q16, driven by shares gains over legacy network security and point solution vendors. Billings growth of 61% yearover-year (yoy) suggests continued near-term expansion, and Imperial Capital sees potential acceleration in the data center market and ramping deployments of new services.

Analyst Michael Kim commented, "We are maintaining our Outperform rating on PANW shares and raising our one-year price
target to $205 from $200 based on our increased estimates and comparative valuation. Our price target is about 19% above the recent share price. PANW achieved strong growth at scale in F1Q16, driven by shares gains over legacy network security and point solution vendors. We highlight PANW’s higher attach rates of its subscription services, buoyed by WildFire (advanced threat protection), and early customer adoption of Traps (endpoint protection). Billings growth of 61% year-over-year (yoy) suggests continued near-term expansion, and we see potential acceleration in the data center market and ramping deployments of new services (Aperture, AutoFocus). We also expect strengthening international growth as the company gains greater sales leverage through its global network of channel partners."

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 $172.02 yesterday.

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