Palo Alto Networks: Color on Analyst Day (161.59)
RBC notes Palo Alto remains in the early innings of penetrating an expanding market as we were pleasantly surprised management expects growth to remain 30%+ for the foreseeable future. LT OM should be 30%+ at scale while the ramp could be a bit slower than previously expected given elevated growth rates. Maintain OP rating as they would expect upside to management's guidance.
Topeka reiterates their Buy rating and $195 PT following the annual Financial Analyst Day. In their opinion, two important subjects were discussed: 1) Prevent (not react) to security threats requires a built from the ground up, integrated, automated platform that the competition doesn't offer and; 2) With a market share of 5-10% (depending on geography) PANW has "high growth for a long time" to quote the CFO.
Wunderlich notes Ignite16, Palo Alto Networks' (PANW) annual user conference, started off with a bang with over 3,500 attendees vs. ~ 1,000 last year. A number of new products and services announced were presented at Ignite, as well as increased customer penetration for Wildfire and Traps, which should continue to increase customer LTV and drive market share gains while the co maintains a balanced approach of growth vs. profitability. Individual customer discussion as well as panel presentations continue to point toward PANW's superior unification of major touch points across the enterprise unifying network security, the firewall, and endpoint; Hold on warranted premium valuation (11x '16 sales).
Needham raises tgt to $187 from $171. They believe PANW conveyed the "accelerating" message by (a) disclosing attach rates by product, suggesting much upside potential, and (b) revealing that only 55% of the sales force is "productive," suggesting future acceleration. Their side conversations with customers suggest the trend of "starting over" (standardizing) with PANW hasn't slowed, and should sustain or accelerate revenue and deferred growth.
PANW -2.4% premarket. |
