UPDATE: Citigroup Initiates Palo Alto Networks at Neutral with $65 PT on Visibility Lack

Citigroup initiated its coverage on Palo Alto Networks

with a Neutral rating and a price target of $65 per share. Citigroup noted, "Network security is a $9B opportunity, growing 8% and Palo Alto Networks (PAN) has brought to market differentiated technology that improves security efficacy. Competitors are scrambling to catch up. … The company has less revenue visibility than SaaS peers with just ~20% recurring, and our modeling sensitivity suggests product shipments, not recurring revenue attach to product is the major growth lever here." Palo Alto Networks closed at $62.72 on Monday.