UPDATE: Morgan Stanley Reiterates Overweight Rating, Raises PT on Palo Alto Networks as Stock Remains Top Pick for 2014

In a report published Monday, Morgan Stanley analyst Keith Weiss reiterated an Overweight rating on

, and raised the price target from $90.00 to $105.00. In the report, Morgan Stanley noted, “PANW Remains a Top Pick for 2014, our favorite play on the secular trend towards consolidated network security functionality. Several factors bolster our confidence in the company's ability to sustain 30%+ billings growth and 45%+ FCF growth in FY15: 1) multiple product cycles ramping into FY15, 2) strong positioning for the core consolidation trend, 3) an improving margin trend post FY15 and 4) slower growth in capex and the reduction in litigation expense. PANW currently trades at 0.7x EV/FCF to growth, well below the >2x EV/FCF for our ‘hyper growth' names or 1.2x for our entire universe. A multiple more in line with growth would suggest PANW closer to our new price target of $105.” Palo Alto Networks closed on Friday at $80.88.