Market Overview

After Palo Alto Networks Posts Q4 Beat, BofA Eyes 2021 Guidance

Share:
After Palo Alto Networks Posts Q4 Beat, BofA Eyes 2021 Guidance

Despite strong fourth-quarter results and exceptional billings growth, Palo Alto Networks Inc (NYSE: PANW) guided to flat-to-down product growth in fiscal 2021, according to BofA Securities.

The Palo Alto Networks Analyst: Tal Liani maintained a Neutral rating on Palo Alto Networks and raised the price target from $255 to $270.

The Palo Alto Networks Thesis: While the company executed well during the fourth quarter, much of its strength is already reflected in expectations and the share price, Liani said in a Tuesday note. (See his track record here.)

Palo Alto Networks reported revenue and earnings of $950 million and $1.48 per share, beating the Street estimates of $924 million and $1.39 per share, respectively.

The company achieved impressive billings growth, with total billings growth accelerating from 17% year-on-year in the second quarter to 32% in the fourth quarter.

Next-gen security billing grew 86%, while billings in the core Firewall Platform business accelerated 19%, the analyst said.

“Overall, the results show continued transition to new form factors and growth areas like Cortex XDR and Prisma Cloud/Access.”

Liani expressed concern regarding the lack of clarity in organic versus acquired growth and the in-line billings guidance for the first quarter and fiscal 2021.

BofA's price target revision reflects the progress in the company's transition away from appliances, the analyst said. 

PANW Price Action: Shares of Palo Alto Networks were trading lower by 1.53% at $263.37 at the time of publication Tuesday.

Related Links:

10 Biggest Price Target Changes For Tuesday

Recap: Palo Alto Networks Q4 Earnings

Latest Ratings for PANW

DateFirmActionFromTo
Aug 2020Morgan StanleyMaintainsOverweight
Aug 2020StifelMaintainsBuy
Aug 2020B of A SecuritiesMaintainsNeutral

View More Analyst Ratings for PANW
View the Latest Analyst Ratings

 

Related Articles (PANW)

View Comments and Join the Discussion!

Posted-In: BofA SecuritiesAnalyst Color Earnings News Guidance Price Target Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
INTCJP MorganMaintains70.0
STMCanaccord GenuityMaintains47.0
ELDeutsche BankMaintains248.0
UAADeutsche BankMaintains13.0
INTCDeutsche BankMaintains55.0
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