Rosenblatt on Palo Alto Networks (PANW): 'We expect a solid print'
Rosenblatt analyst Catherine Trebnick reiterated a Buy rating and $250.00 price target on Palo Alto Networks (NASDAQ: PANW)
The analyst comments "The company reports on Friday, August 18, after the market close. The company's stock price has fallen by 8% since the earnings announcement on August 2, hit with an unusual earning date, and in sympathy with FTNT's underperformance that printed on 8/3. A few thoughts on this odd Friday two-hour call. 1) Investors are concerned the company's performance could be lackluster. 2) Management has a tight schedule, with SKO on August 21. 3) The earnings call is two hours long, which is unusual. The expectation is Mgmt. will provide new two-year target metrics with analysts taking the weekend to digest the material. The last time the company reported on a Friday was five years ago. PANW did miss estimates, and the product segment generated 39% of total revenue vs. today, where IT trends support platform-based solutions; the company has three platforms, and the product segment is <25% of total revenue. We expect a solid print, with billings/ revenue of 18%/26% Y/Y in line with Street estimates and midpoint to mgmt guide. We are maintaining our Buy rating and PT of $250."
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Shares of Palo Alto Networks closed at $219.34 yesterday.