Story updated at 10 a.m. to reflect market activity.
Palo Alto gained 0.1% to $68.21 in morning trading.
The firm set a price target of $80 for the stock. Analysts Erik Suppiger and John Lucia said Palo Alto is quickly becoming a leader in the Advanced Persistent Threat (APT) protection market.
"With approximately three weeks left in the quarter, our initial checks suggest sales are tracking at or above plan and that the company is executing well with channel partners," the analysts wrote. "We also believe Palo Alto is expanding its differentiation with its APT service, WildFire, and that it has a significant time-to-market advantage over its competition."
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Separately, TheStreet Ratings team rates PALO ALTO NETWORKS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PALO ALTO NETWORKS INC (PANW) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."