Market Overview

Palo Alto Networks Downgraded To Hold By Deutsche Bank Amid Increasing Headwinds

Palo Alto Networks Downgraded To Hold By Deutsche Bank Amid Increasing Headwinds
Related PANW
Watch These 7 Huge Call Purchases In Wednesday Trade
Palo Alto Gains Market Share; Growth Approach Should Push Shares Higher
Wunderlich Capital Managemnt Buys Unilever PLC, Shire PLC, Oaktree Capital Group LLC, Sells ... (GuruFocus)

Deutsche Bank's Vishal Shah downgraded Palo Alto Networks Inc (NYSE: PANW) to Hold, while lowering his price target considerably from $210 to $150.

The company has been successful with macro demand pressure that others have cited. However, for the first time in over three quarters, Palo Alto Networks doesn't seem so insulated from the macro pressures facing the sector.

Related Link: Pacific Crest On Palo Alto: "Take Advantage Of Buying Opportunities"

Palo Alto did well this quarter with subscription revenue up 69 percent and billings up 61 percent. However, product revenue "growth decelerated to 33 percent from 46–47 percent in prior quarters," Shah noted. Additionally, the earnings beat was only by 2 percent, when generally Palo Alto has beat by 5 percent to 7 percent.

Shah is lowering revenue estimate to $392 million (+38 percent) from $402 million and product revenue estimate to $188 million (+22 percent) from $202 million.

Palo Alto shares are down 12.85 percent trading at $129.14.

Latest Ratings for PANW

Jan 2017JefferiesInitiates Coverage OnHold
Jan 2017BMO CapitalInitiates Coverage OnMarket Perform
Dec 2016Summit Redstone PartnersInitiates Coverage OnHold

View More Analyst Ratings for PANW
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas News Downgrades Price Target Analyst Ratings Movers Trading Ideas


Related Articles (PANW)

View Comments and Join the Discussion!