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Palo Alto expands VMware partnership, Gabelli downgrades on valuation

  • A day after posting an FQ2 beat, Palo Alto Networks (PANW -0.2%) has announced it's forming a new reseller deal with VMware (VMW, EMC), and that the companies have begun offering a solutions that meshes the former's virtualized next-gen firewall (runs on servers making use of virtualization software such as VMware's) with the latter's NSX network virtualization/SDN platform (announced last year)
  • Palo Alto and VMware assert the solution, which also features management software and security services, allows for a single point of management for security services, policies, and threats. Earlier this month, Palo Alto expanded its partnership with Citrix to cover its virtualized firewalls.
  • Palo Alto shares have largely shrugged off a valuation-driven downgrade to Hold from Gabelli today. The firm is upping its FY14 (ends in July) revenue estimate by $12M to $574M in response to the FQ2 report, but considers Palo Alto's fair value to be $70/share (7x FY15E EV/sales).
Comments (1)
  • Michael Bryant
    , contributor
    Comments (5351) | Send Message
     
    (PANW) is worth far more than $70/share.
    26 Feb, 09:56 AM Reply Like
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