UPDATE: Wells Fargo Upgrades Palo Alto on Bullish Fundamentals, Shares Continue Downward Trend

In a report issued Monday morning, Wells Fargo analyst Gray Powell upgraded Palo Alto Networks Inc.

to Outperform from Market Perform and raised the valuation range from $53-56 to $75-81. Powell cited confidence in Palo Alto fundamentals, and an estimated 34 percent revenue growth in FY 2014, driven in part by the introduction of new products. While Powell notes the litigation with Juniper Networks

has the potential to create volatility, he argues PANW would still be attractive even in a “reasonably bad case scenario.” Palo Alto shares have continued trending downward after reaching a high of $61.08 Monday morning following the Wells Fargo upgrade, and are now down ~3 percent to ~$58. BZ NOTE: Other enterprise network security stocks are trading sharply lower today, along with the broader market.