Palo Alto Networks price target lowered to $365 from $420 at RBC Capital

RBC Capital lowered the firm’s price target on Palo Alto Networks to $365 from $420 but keeps an Outperform rating on the shares after its Q2 results and guidance. The company’s billings and revenue outlook was reduced as management announced an “Accelerated Platformization and Consolidation” strategy that causes a short-term billings/revenue hit due to offering of 6 months of free services to customers that consolidate to help with the costs of consolidation, the analyst tells investors in a research note. While the stock will now be under pressure, having gained 44% since reporting Q1, the management’s track record has earned it the “benefit of the doubt”, RBC added.