Palo Alto cut to Neutral at BofA on risk of additional pressure on billings

BofA downgraded Palo Alto Networks to Neutral from Buy with a price target of $265, down from $290. Palo Alto reported “a healthy quarter,” but billings missed the estimate by roughly $50M and the company cut fiscal year billings guidance by about $200M, noting shorter billings duration, the analyst tells investors. With the stock up 85% year-to-date and the risk of additional billings growth weakness and further shortening of duration, the firm downgrades its rating in conjunction with adjusting its estimates.