Palo Alto Networks Receives a Buy from Deutsche Bank

By George MacDonald

Deutsche Bank analyst Karl Keirstead reaffirmed a Buy rating on Palo Alto Networks (NYSEARCA: PANW) on May 28 and set a price target of $200. The company’s shares closed last Friday at $169.49, close to its 52-week high of $169.84.

Keirstead said, “PANW delivered very strong 3QFY15 results, with every key metric above guidance. The print was highlighted by total revs growth of 55% to $234m, a modest growth rate acceleration despite a tougher comp and 5% above the high end of the guidance, within the “normal” 2%-6% beat. Billings of $302m ( 56%) were well above our $288m estimate, OCF margins of 37% were above 35% for the third straight quarter, and non-GAAP OM of 13.9% were above our 12.7% estimate. We reaffirm our BUY rating and raise our PT to $200.”

Currently, the analyst consensus on Palo Alto Networks is Moderate Buy and the average price target is $176.50, representing a 4.1% upside. In a report published on May 28, Piper Jaffray also reiterated a Buy rating on the stock with a $185 price target.

Based on Palo Alto Networks` latest earnings report from April 30, the company posted quarterly revenue of $234.2M and quarterly net profit of -$45,935,000. In comparison, last year the company earned revenue of $150.7M and had a net profit of -$146,587,000.

According to TipRanks, Keirstead is a 4-star analyst with an average return of 12.2% and a 61.6% success rate. Keirstead covers the Technology sector, focusing on stocks such as Csg Systems International, Concur Technologies, and Jive Software Inc.

Palo Alto Networks Inc offers an enterprise network security platform that allows enterprises, service providers, and government entities to secure their networks and safely enable applications running on their networks.