UPDATE: Stifel Nicolaus Lowers PT on Palo Alto Networks on Attractive Growth Outlook
In a report published Friday, Stifel Nicolaus analyst Todd Weller reiterated a Buy rating on Palo Alto Networks (NYSE: PANW), but lowered the price target from $70.00 to $60.00.
In the report, Stifel Nicolaus noted, “Shares of Palo Alto were off 14.5% after hours in reaction to its revenue miss. The weakness seems reflective of macro pressures as opposed to other factors. Despite the weakness and a lower outlook, we continue to see an attractive growth outlook for Palo Alto with growth of 30%+ over the next few years. With the sell-off in the stock, we view valuation to be more interesting. Our view is to be buyers on weakness and therefore we reiterate our Buy rating. We are lowering our target to $60 based on 8x our FY14 revenue estimate.”
Palo Alto Networks closed on Thursday at $54.39.
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