Palo Alto Remains A Unique Disruptor In The Network Security Market, Says Oppenheimer

In a research report sent to investors today, Oppenheimer analyst Shaul Eyal reiterated an Outperform rating on Palo Alto Networks (NYSEARCA:PANW) with a $120 price target, as the company reported strong F1Q15 results.

Eyal noted, “Multiple factors support our bullish view: 1) strong high-end appliances traction (PA-7050), 2) recurring subscription revenue growth of 76% YoY to $43.7M, 3) improved F2Q guidance, and 4) reaffirmed commitment to exiting FY16 with operating margins in the low 20% area (reported 10.6% this quarter). We are raising FY15 estimates and are reiterating our Outperform rating and $120 price target.”

The analyst continued, “PANW remains a unique disruptor in the network security market with its next-generation security platform. We reiterate our Outperform rating; our $120 PT is based on 8.6x EV/FY16E revenue.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Shaul Eyal has a total average return of 10.4% and a 75.3% success rate. Eyal has a 21.6% average return when recommending PANW, and is ranked #251 out of 3377 analysts.

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