The network security platform was upgraded to "overweight" from "equal weight" at Barclays (BCS).
"Our upgrade is driven primarily by three factors. First, the underlying trends in the market appear to be improving, evidenced by our most recent CIO survey in which security was seen as the top driver of IT spend in 2014," Barclays said.
"Second, the recent pullback in high-multiple names has created a more compelling entry point and on a relative basis our downside risk to further pullbacks is limited."
"Finally, the overhang from the litigation with Juniper appears to be dissipating with investors once again refocusing on the fundamental strength of the business model."
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."