UPDATE: FBN Securities Initiates Coverage on Palo Alto Networks with Outperform Rating, $75 PT
In a report published Friday, FBN Securities initiated coverage on Palo Alto Networks (NYSE: PANW) with an Outperform rating and a $75.00 price target.
FBN noted, “PANW offers a compelling next-generation firewall (NGFW) solution as it was first to market with what is considered to be a NGFW (with application and user identification), and parlayed this advantage into building a strong customer base (7,750 in more than 100 countries as of the end of April). Channel checks indicate robust sales ahead. Although we are modeling growth to moderate to 58% in F2013 from the current 111% level, we see upside to our already rather aggressive estimates. We estimate that in 2014 the NGFW market will be roughly a $5B market (~60% of the $8B firewall market), and with our $568M revenue estimate for PANW that year, this implies that PANW will have ~11% share then. We think that this is quite doable, and see upside here.
Palo Alto Networks closed on Thursday at $59.88.
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