Palo Alto Networks (PANW) Bullish at RSA Conference - Wells Fargo
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Rating Summary:
46 Buy, 18 Hold, 0 Sell
Rating Trend: Down
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 18
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Wells Fargo analyst, Gray Powell, met with Palo Alto Networks (NYSE: PANW) CMO Rene Bonvanie at the RSA Conference who appeared very bullish on the continued growth prospects of its WildFire advance threat detection solution as well as newer subscriptions services such as AutoFocus and Traps. No change to Outperform rating or target range of $218 to $225.
PANW's success is evident in that the company grew billings in absolute dollar terms at 1.8x the pace of the 2nd fastest growth company--FTNT and 3.7x the abs dollar pace of CHKP and FEYE in CQ4'15.
A lot of room for growth with WildFire. PANW had 9K Wildfire customers at the end FQ2'16, up from 5K a year ago. As more products like Traps, Aperture, AutoFocus and PFPT Threat Intelligence feed into Wildfire--the product becomes more effective and delivers more value to customers. Today, roughly 30% of PANW customers use Wildfire and over time the company thinks penetration could match its Threat Prevention product--which we roughly estimate to be 80%-90%.
Trading at just under 15x 2017E EV/FCF with the potential to grow revenue in excess of 30% over the next few years--we think valuation is attractive.
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 $148.64 yesterday.
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