Oppenheimer Reiterates Outperform Rating On Palo Alto Networks Following Earnings Results


In a research report issued today, Oppenheimer analyst Shaul Eyal reiterated an Outperform rating on Palo Alto Networks Inc (NYSE:PANW) with a $150 price target, after the company reported fiscal second-quarter results, posting EPS of $0.19 on revenue of $217.7 million.

Eyal noted, “Handily besting all financial metrics across all product lines and geographies, PANW reported strong F2Q15 results. Billings growth continues to be the star of the show growing 51.5% YoY to $282.8M (vs. the Street’s $262.5M estimate) and showing demand trends remain strong. Multiple factors support our bullish view: 1.) strong growth in appliances (PA-7050 & 3060), 2.) strength in recurring subscription revenue, 3.) better than expected F3Q guidance, 4.) crystallizing the commitment to exiting FY16 with operating margins in the low 20% area and 5.) room to gain share in all core markets (Network, STAP & Endpoint).”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Shaul Eyal has a total average return of 12.9% and a 70.1% success rate. Eyal has a 45.8% average return when recommending PANW, and is ranked #114 out of 3497 analysts.

 

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