UPDATE: Stifel Nicolaus Cuts PT to $70 on Palo Alto Networks on Expectations Challenge

Stifel Nicolaus reiterated its Buy rating on Palo Alto Networks

but reduced its price target from $75 to $70. Stifel Nicolaus commented, "Palo Alto reported strong F1Q13 results, marking its second solid quarter as a public company. We believe the results reflect continued strong demand for network security and continued success by Palo Alto with new customer acquisition and expanding business with existing customers. The stock appeared off approximately 3% after hours. Our feeling is that the expectation bar had reduced enough heading into the print to where these results should be viewed favorably. However, at the same time, we feel that the stock's premium valuation has made it challenging to get a good handle on expectations." Palo Alto Networks closed at $51.30 on Thursday.