Why I Don’t Like Palo Alto Networks Inc. Shares (Yet)
When Palo Alto Networks (NYSE: PANW) delivers its fiscal fourth-quarter results on Aug. 31, it will have to show significant progress in a couple of key areas if it's going to change my bearish opinion. And based on its marginal stock performance this year, I'm hardly the only one.
For years, the Street seemed more than content to focus on Palo Alto's skyrocketing top-line growth while brushing aside its mounting losses. Last quarter's 25% revenue growth to $431.8 million not only beat Palo Alto's own guidance, it handily surpassed pundit's expectations. So what's not to love? Simple: Despite its stellar sales growth, Palo Alto remains in the red, and what improvement it reported on the profitability front was marginal at best.
Image source: Palo Alto Networks.
Source: Fool.com
Palo Alto Networks Stock
With 98 Buy predictions and not a single Sell prediction Palo Alto Networks is an absolute favorite of our community.
With a target price of 331 € there is a slightly positive potential of 9.46% for Palo Alto Networks compared to the current price of 302.4 €.
