Market Overview

Raymond James: Palo Alto Networks Continues To Gain Share

Share:
Raymond James: Palo Alto Networks Continues To Gain Share

Palo Alto Networks Inc (NYSE: PANW) is moving higher after an analyst reiterated optimism heading into the company’s first-quarter earnings report, scheduled for Thursday.

The Analyst

Raymond James analyst Michael Turits reiterated an Outperform rating.

The Thesis

With no major changes in the competitive landscape, Turits says Palo Alto and Fortinet Inc (NASDAQ: FTNT) are continuing to be viewed as share gainers.

“While channel checks were less biased to the positive than last quarter, most contacts thought the general tone of Palo Alto business was solid and pipelines were good,” Turits wrote in a note.

The analyst also said comments on Traps and Global Protect Cloud Service continue to improve and feedback has been enthusiastic on the evident.io and Redlock acquisitions.

Turits said one “nearly ubiquitous concern” in channel conversations is that new management will make changes to the channel program, which would make it more difficult to resell and make margin on cloud and subscription services, impeding the ability for the channel to make platform sales.

“While we see incremental cloud and data opportunity under the new management team, we concur that there is also both operational and strategic risk including the channel,” said Turits.

Price Action

Shares are Palo Alto closed Monday at $170.32, up 2.3 percent.

Related Links:

Analyst: Palo Alto Networks Is No Longer A 'Show Me' Story

Fortinet's Underappreciated Growth Story

Latest Ratings for PANW

DateFirmActionFromTo
May 2020Credit SuisseMaintainsNeutral
May 2020Piper SandlerMaintainsOverweight
May 2020B of A SecuritiesReiteratesNeutral

View More Analyst Ratings for PANW
View the Latest Analyst Ratings

 

Related Articles (PANW)

View Comments and Join the Discussion!

Posted-In: evident.io Michael Turits palo alto networks RedlockAnalyst Color Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
OCGNChardan CapitalMaintains0.700
ZMB of A SecuritiesMaintains240.0
PTONB of A SecuritiesMaintains54.0
IRBTB of A SecuritiesMaintains77.0
DKSB of A SecuritiesMaintains45.0
View the Latest Analytics Ratings
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.
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