In a research report released Monday, Oppenheimer analyst Shaul Eyal reiterated an Outperform rating on shares of Palo Alto Networks Inc (NYSE:PANW) with a price target of $180, following a round of channel checks suggesting PANW’s business is tracking ahead of the midpoint of guidance.

Eyal wrote, “Our checks suggest that PANW’s F4Q15 results are tracking better than its midpoint revenue guidance of $254M (+42.5% YoY). As such, we are raising our F4Q15 revenue estimate to $256.0M from $252.9M; our EPS estimate is intact at $0.25—upside to our estimates is highly likely.”

“We remain positive on the shares for the following reasons: 1) Continued strength across all core products and geographies (US generates ~67% of total revenue); 2) PANW’s platform approach is gaining further momentum; 3) Increasing adoption of new subscription services such as Traps (endpoint) & Wildfire (APT); and 4) Increased leverage driven by improved productivity and scale. PANW reports 9/9 AMC,” the analyst continued.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Shaul Eyal has a total average return of 16.2% and a 64.7% success rate. Eyal has a 46.5% average return when recommending PANW, and is ranked #33 out of 3743 analysts.

Out of the 26 analysts polled by TipRanks, 23 rate Palo Alto Networks stock a Buy, while 3 rate the stock a Hold. With a downside potential of 5.9%, the stock’s consensus target price stands at $158.17.

PANW Chart