Analysts Are Bullish on These Consumer Goods Stocks: PANW, MRAM

By Ryan Adsit

There’s a lot to be optimistic about in the Consumer Goods sector as 2 analysts just weighed in on Palo Alto Networks (NYSEArca: PANW) and Everspin Technologies Inc (NASDAQ: MRAM) with bullish sentiments.

Palo Alto Networks (NYSEArca: PANW)

In a report released today, Shaul Eyal from Oppenheimer assigned a Buy rating to Palo Alto Networks (NYSEArca: PANW), with a price target of $173. The company’s shares closed yesterday at $138.67.

Eyal noted:

“Ahead of results scheduled for 11/20, we made a round of checks with 20 VARs in the US and Europe, and we believe: 1) PANW could come in ahead of Consensus revenue expectations ($489M, +22.9% YoY), driven by solid mid-range appliance traction, notably its newer appliances (PA-5200, PA-800, PA-220), and ongoing demand for Traps and Wildfire; 2) Firewall vendor softness in CY3Q is largely unrelated to any uniform cause that would significantly impact PANW’s performance; therefore, in our view, the high-level perspective of PANW’s market remains healthy; 3) Pricing pressures have continued to ease and from the tone of our checks, the momentum of sales productivity is consistent with F4Q17—which we view positively; and 4) We expect PANW to keep FY18 guidance intact. Reiterate Outperform.”

According to TipRanks.com, Eyal is a 5-star analyst with an average return of 10.9% and a 62.0% success rate. Eyal covers the Technology sector, focusing on stocks such as CSG Systems International, Nuance Communications, and IAC/InterActiveCorp.

Currently, the analyst consensus on Palo Alto Networks is Moderate Buy and the average price target is $164.17, representing a 18.4% upside.

In a report issued on November 3, Jefferies also reiterated a Buy rating on the stock with a $168 price target.
Everspin Technologies Inc (NASDAQ: MRAM)

Needham analyst Rajvindra Gill maintained a Buy rating on Everspin Technologies Inc (NASDAQ: MRAM) today and set a price target of $17. The company’s shares closed yesterday at $9.62, close to its 52-week low of $6.63.

Gill observed:

“Sometimes the product roadmap enters a reduced speed zone and one is caught going a bit too fast. We got caught here. The good: 1) we believe Toggle products still have room for growth at a short-midterm product mix profile above LT gross margin targets 2) realignment strategy focuses on MRAM adoption 3) memory market is prioritizing high performance; paired with current high ASPs – could expedite MRAM adoption. The bad: 1) push out of 1Gb development (which can target RAID market) 2) nvNitro products – sooner adoption at lower ASPs. We think the net result is a slower ST-MRAM revenue ramp and believe the stock is worth $17 (3.5x EV/S on 2018 est). We continue to see substantial value in Everspin’s technology and maintain our Strong Buy rating.”

According to TipRanks.com, Gill is a top 25 analyst with an average return of 23.4% and a 69.3% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Smart Global Holdings Inc, Adesto Technologies Corp, and Silicon Laboratories.

Everspin Technologies Inc has an analyst consensus of Strong Buy, with a price target consensus of $17.67.

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