NEW YORK (TheStreet) -- Shares of Palo Alto Networks (PANW) - Get Report are plummeting by 10.32% to $133 in pre-market trading on Friday, as Deutsche Bank downgrades shares to "hold" from "buy" given its disappointing 2016 third quarter financial results

The firm slashed its price target 28.6% to $150 from $210 on the stock. 

After yesterday's market close, the cyber security firm reported mixed results for the third quarter and a disappointing outlook for the current quarter. 

A 69% uptick in subscription revenues and 61% growth in billings "were again strong," but product revenue growth decelerated to 33% from between 46% and 47% in previous quarters, Deutsche Bank noted. Palo Alto Networks beat earnings by just 2% vs. its typical beat of between 5% and 7%, and the beat was back-end loaded.

Palo Alto Networks's fourth-quarter revenue forecast implies further deceleration to 37% total revenues growth and between 20% and 25% product revenues growth, the firm added.

"This first quarter of slowdown from the sector's marquee name could create an overhang that may last several quarters," Deutsche Bank contended.

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.

Palo Alto Network's weaknesses include its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: PANW

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 article's author.

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