NEW YORK (TheStreet) -- Shares of Palo Alto Networks (PANW) - Get Report were slumping 6.16% to $134.60 in pre-market trading on Wednesday after the company gave a weak forecast for the current period, even though it reported better-than-expected 2016 fourth quarter revenue.
After yesterday's closing bell, the Santa Clara, CA-based cyber-security company said it expects first-quarter earnings to be in the range of 51 cents and 53 cents on revenue of $396 million to $402 million.
Analysts are looking for earnings of 56 cents per share and $402 million in revenue.
Raymond James subsequently cut its stock rating for Palo Alto Networks to "outperform" from "strong buy" this morning, citing its first quarter guidance. The firm also reduced its price target to $165 from $180.
The company sees product revenue growth in the range of 12% to 13%, while analysts are looking for growth of 22%, Raymond James added, according to TheFly.
Wells Fargo analysts said the company's product revenue guidance is "conservative" and noted that Palo Alto Networks expects product revenue growth to increase in 2018.
The firm maintained its "outperform" rating, as well as its price target of $183 to $191 on the stock.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate PALO ALTO NETWORKS INC as a Sell with a ratings score of D. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: