Piper Jaffray Remains Bullish on Palo Alto Networks (PANW) Following 3Q - PT to $167

Piper Jaffray maintained an Overweight rating on Palo Alto Networks (NYSE: PANW), and cut the price target to $167.00 (from $180.00), following the company's 3Q earnings report. Palo Alto reported revenue of $345.8M (cons $339.9M), which exceeded the high-end of guidance by 2.0%. EPS of $0.42 (cons $0.42) was also at the high-end of guidance ($0.41-$0.42).

Analyst Andrew Nowinski commented, "Palo Alto reported FQ3(Apr) revenue and billings above guidance and Street estimates. However, guidance for FQ4(Jul) was slightly below Street estimates for the first time ever. Management said the uncertain macro environment and extended sales cycles are having an impact, though competition was not a factor. Based on guidance, we estimate billings growth will decelerate to ~38% in FQ4(Jul), though that was off a tough comp. Despite the slowdown, we believe Palo Alto still offers best-in-class growth, coupled with strong FCF margin. As such, we are reiterating an Overweight rating, but lowering our price target to $167 (prev $180)."

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 $148.18 yesterday.

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