Palo Alto Networks (PANW) Estimates Raised at Oppenheimer Amid Strong Results

Oppenheimer analyst Shaul Eyal reiterated an Outperform rating and $120 price target on Palo Alto Networks (NYSE: PANW) following strong Q1 results.

Eyal commented, "PANW reported strong F1Q15 results, handily besting all financial metrics across all product lines and geographies. Of special note were billings, growing 52.3% year over year to $240.5M (vs. the Street's $223M estimate) and telling the true story of strong demand. Multiple factors support our bullish view: 1) strong high-end appliances traction (PA-7050), 2) recurring subscription revenue growth of 76% YoY to $43.7M, 3) improved F2Q guidance, and 4) reaffirmed commitment to exiting FY16 with operating margins in the low 20% area (reported 10.6% this quarter)."

The firm raised 2Q15E estimates to $202.1M/$0.16 from $192.4M/$.16. FY15E goes to $842.6M/$0.73 from $811.5M/$0.69. FY16E are now $1.11B/$1.33 from $1.06B/$1.31.

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 $113.26 yesterday.

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