Palo Alto Networks initiated with an Outperform at Scotiabank

Scotiabank analyst Patrick Colville initiated coverage of Palo Alto Networks with an Outperform rating and $155 price target. Palo Alto is "one of the best long-term stories in software," argues Colville, highlighting its sticky core business, vendor consolidation, and adoption of cloud security. While he thinks the Street is correctly modeling product sales, a reacceleration to services revenue that he believes could happen "would be a positive surprise to billings growth," the analyst said.