Close

UBS Cuts PT on Palo Alto Networks (PANW), Keeps 'Buy'

April 11, 2016 8:48 AM EDT
Get Alerts PANW Hot Sheet
Price: $284.13 +0.66%

Rating Summary:
    46 Buy, 18 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
Join SI Premium – FREE

UBS analyst Brent Thill noted that VAR and customer conversations out of Palo Alto Networks' (NYSE: PANW) user conference were broadly positive, with salient themes including:

1) convergence of traditionally separate enterprise networking infra / security ops disciplines: should give PANW more airtime and continue likelihood of displacement success (2011-2015 share gains chart inside)

2) rationalization of vendor sprawl: we think standalone APT market and even CASB could witness dynamics similar to the standalone IPS market as inline, natively integrated platforms are better resonating from a TCO and visibility perspective

3) growing network traffic compounded by wireless, IoT: should provide sustainable growth fuel as increased throughput requirements (tightens hardware depreciation cycles) and need for network segmentation increase

4) next-gen endpoint of immense interest, but still maturing with many contenders; PANW pushing aggressively as Traps uptake which is still low (300 logos, ~1% penetrated);

5) imitated but not yet duplicated: still getting high marks for networking prowess, architecture and cohesive features, with configuration ease and strong management (CHKP's historical strength) bigger pluses.

No change to the Buy rating but the $180 PT based on 50/50 blend EV/S and EV/FCF (21x) comes down from $186.

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 $147.85 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst PT Change

Related Entities

UBS