Palo Alto missed ‘heightened buy-side expectations,’ says Stifel

Stifel says Palo Alto Networks delivered “a generally in-line print,” with most metrics above consensus estimates, but billings grew just 3% year-over-year, which modestly missed consensus and missed “heightened buy-side expectations” of mid-to-high single-digit growth. Given expectations for more upside, coupled with the run in shares, the firm is “not surprised to see the stock give back some recent gains,” though the analyst continues to support Palo’s broader platform strategy and keeps a Buy rating and $330 price target on shares.