UPDATE: FBN Securities Reiterates Outperform Rating, Raises PT on Palo Alto Networks on Strong FQ2 Results

In a report published Friday, FBN Securities reiterated its Outperform rating on Palo Alto Networks

, and raised its price target from $65.00 to $70.00. FBN Securities noted, “PANW beat consensus revenue and EPS for FQ2, and posted very strong deferred revenue growth of 92% Y/Y and 17% Q/Q due to an increase in multi-year deals in both subscriptions and maintenance services. Our table (pg. 2 of this report) comparing PANW to competitors CSCO, JNPR, CHKP, FTNT, and FIRE in the network security market shows that in CQ4 PANW's product revenue of 60%Y/Y was 15x the 4% Y/Y growth rate of the market and more than two times faster than the company with the second fastest growth rate - FIRE (28% Y/Y). We conclude that PANW, FTNT, and FIRE continue to gain share from CSCO, JNPR, and CHKP, and PANW is gaining share from FTNT and FIRE. Although the stock may pull back today on profit-taking (stock was up 5% yesterday), investors should be accumulating shares of the best-of-breed player in the network security market.” Palo Alto Networks closed on Thursday at $61.13.