UPDATE: JMP Securities Reiterates Market Outperform Rating, Raises PT on Palo Alto Networks Following Strong F4Q14 Results/F1Q15 Guidance

In a report published Wednesday, JMP Securities analyst Erik Suppiger reiterated a Market Outperform rating on

, and raised the price target from $90.00 to $120.00. In the report, JMP Securities noted, “Palo Alto reported F4Q EPS of $0.11 (consensus $0.11) on revenues of $178 million (consensus $161 million), and guided to F1Q EPS of $0.12 (consensus $0.12) on revenues of $178-$182 million (consensus $174 million). Bookings in the quarter were $233 million compared to consensus of $207 million. In our view, the key takeaways from the quarter include: 1) Palo Alto's acceleration in billings, revenues, customer acquisition, and customer lifetime value reflect the company's opportunity to capture share in a large market where it has a low penetration rate; 2) Palo Alto's new products represent a material catalyst for the company as highlighted by its WildFire customer growth of ~50% sequentially; and 3) the company's investments in sales and marketing are generating aggressive growth, and it is now in a position to drive operating leverage. We believe Palo Alto leverages a highly differentiated platform that is enabling the company to disrupt incumbent security vendors in its core market, as well as effectively expand into other rapidly growing security markets. The company is rapidly gaining share from traditional security vendors, and with several additional products coming to market, we feel it will continue to gain share. Even with the stock trading up ~4% in the aftermarket to ~$93, we feel the stock is undervalued.” Palo Alto Networks closed on Tuesday at $89.28.