Market Overview

Palo Alto's Q2: 'Strength Across The Board'

Share:
Palo Alto's Q2: 'Strength Across The Board'

Palo Alto Networks Inc (NYSE: PANW) reported fiscal second quarter results, which not only included a top-and-bottom-line beat but showed "strength across the board," according to KeyBanc.

The Analyst

KeyBanc Capital Markets' Rob Owens maintains an Overweight rating on Palo Alto's stock with a price target boosted from $190 to $210.

The Thesis

Palo Alto is developing a reputation of consistently exceeding expectations in its earnings reports and Monday's report was no exception, Owens said in a note. Revenue of $542 million in the quarter exceeded the $525 million expected and the "vast majority" of the upside came from product revenue of $202 million, which was $15 million better than expected.

The earnings report also showed the company continues to benefit from hardware and platform upgrades and improved execution in targeting existing customers for new purchases, according to Owens. Palo Alto's momentum comes at a time when some of its biggest competitors appear to be "struggling a bit" on the product side.

Palo Alto is well positioned to benefit from an industry-wide refresh in the back half of 2018, the analyst said. As this cycle plays out over time, the company should see increased customer acquisition which will drive continue out performance in its results.

Price Action

Shares of Palo Alto were trading higher by more than 6 percent at $180, which is above the stock's 52-week high of $169.72.

Related Links:

22 Stocks Moving In Tuesday's Pre-Market Session

12 Stocks To Watch For February 27, 2018

Latest Ratings for PANW

DateFirmActionFromTo
Nov 2019MaintainsBuy
Nov 2019MaintainsOverweight
Nov 2019Initiates Coverage OnNeutral

View More Analyst Ratings for PANW
View the Latest Analyst Ratings

Posted-In: hardware KeyBanc Capital Markets Rob OwensAnalyst Color Earnings News Price Target Analyst Ratings Best of Benzinga

 

Related Articles (PANW)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

The Market In 5 Minutes: LitePay-Litecoin, Comcast-Sky, Economic Data

Benzinga Pro's 5 Stocks To Watch Today