Evercore sees ‘alot to like’ when looking past Palo Alto ‘billings noise’

Evercore ISI says Palo Alto Networks “put up a solid quarter,” but adds that the post-market response to a weaker billings quarter and lackluster guide is “unsurprising” given that seeing billings remain under pressure with a slight miss versus consensus “will be difficult for some to accept.” However, the firm’s thesis on the defensibility of cyber is not changing and its long-term view on Palo Alto remaining the dominant cyber vendor “still holds.” The firm is reiterating its Outperform rating for now with continued optimism regarding 12-month revenue growth acceleration, notes the analyst, who has a $385 price target on Palo Alto shares.