UPDATE: Nomura Initiates Palo Alto Network at Neutral on Risk/Reward

Nomura initiated coverage on Palo Alto Networks

with a Neutral rating and a $60 price target. Nomura commented, "Palo Alto's core NGFW technology helps businesses enable their employees to safely use next-generation Web applications (e.g., Facebook, LinkedIn, and DropBox) and strengthens security across organizations. While the company's small size in a competitive and penetrated market would typically be a red flag, Palo Alto's leadership position in the disruptive NGFW market, coupled with a seasoned and respected management team, has helped the company achieve exceptional growth rates and go to market effectively against entrenched competitors. Despite We believe that the risk / reward is balanced given the current high valuation." Palo Alto Network closed at $56.01 on Monday.