Palo Alto Networks' Near-Term Just Got Messier: What 10 Analysts Are Saying
Portfolio Pulse from Avi Kapoor
Palo Alto Networks Inc (NASDAQ:PANW) shares dropped after reporting fiscal Q2 revenue beat but disappointing guidance. Analysts adjusted ratings and price targets, citing concerns over near-term growth due to a new pricing strategy offering free services for customer commitments, impacting billings. Despite the near-term challenges, some analysts remain optimistic about PANW's long-term growth potential.
February 21, 2024 | 7:08 pm
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Palo Alto Networks' shares declined after Q2 earnings, with analysts adjusting ratings and price targets due to concerns over a new pricing strategy impacting near-term growth.
The significant drop in PANW's share price reflects market reaction to the company's disappointing guidance and the introduction of a new pricing strategy that offers free services in exchange for long-term commitments. This strategy is expected to negatively impact billings and revenue in the near term, leading to a downgrade in analyst ratings and price targets. However, some analysts remain optimistic about the company's long-term growth potential, suggesting a mixed impact on investor sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100