UPDATE: Goldman Sachs Upgrades Palo Alto Networks to Conviction Buy, Reiterates $80 PT

In a report published Friday, Goldman Sachs Group upgraded its rating on Palo Atlo Networks

from Buy to Conviction Buy, and reiterated its $80.00 price target. Goldman Sachs noted, “Our research with PANW resellers, customers and partners gives us confidence that PANW is successfully replacing legacy vendors as the core firewall and that install base growth is likely to inflect in 2013. We believe that the recent stock sell off (down 23% vs. up 4% for the Russell 3000 from September 10 - January 16) has created an attractive entry point for the fastest growing public security vendor. Fears of the January 16 lock-up release of 36 mn shares have now passed. We believe 1Q13 results had a negative effect on sentiment as product growth decelerated from 70% yoy to 30%, but we believe the slowdown is due to tough compares and expect acceleration.” Palo Alto Networks closed on Thursday at $54.49.