Palo Alto Networks price target lowered to $350 from $385 at Truist

Truist lowered the firm’s price target on Palo Alto Networks to $350 from $385 but keeps a Buy rating on the shares. The company’s Q2 results and outlook saw revenue within guidance and billings below expectations, driven by softer spend in the federal sector and a shift to platformization, the analyst tells investors in a research note. The management also cited “cybersecurity spending fatigue”, which caused it to lay out a change in competitive strategy that looks to accelerate platformization of products over a ramped time period, Truist states, adding that this will negatively impact billings and revenue growth near term but re-accelerate top line growth and consolidate more spend with the company longer-term.