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Palo Alto Networks added to ‘Tactical Underperform’ list at Evercore ISI

Evercore ISI lowered the firm’s price target on Palo Alto Networks to $385 from $405 and is adding Palo Alto to the firm’s “Tactical Underperform” list ahead of fiscal Q3 results. After having conducted a quarterly survey involving 15 large partners, the firm says the data suggests that the ecosystem maintains a positive long-term outlook, with continued optimism regarding 12-month revenue growth acceleration, but adds that there was some moderation in quarter-over-quarter pipeline momentum and said that Palo Alto’s “platformization” strategy received mixed reviews. The firm believes tactical caution into the Q3 print is “warranted” as it is taking a somewhat more cautious stance, though it maintains an Outperform rating on the shares.

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