Mon, Feb. 23, 11:52 AM
- With shares having more than doubled in February as of Friday's close, JPMorgan has downgraded CyberArk (CYBR -11.8%) to Underweight, and is reiterating a $42 target.
- JPMorgan: "Closing at just over $70 the stock is trading at roughly 9.7x our best upside scenario for 2016 revenue that we outline (…) It is not that we think the company cannot reach these estimates, but rather this level of upside appears to already be factored into the stock at these levels."
- Security tech peers FireEye (FEYE -4.4%), Palo Alto Networks (PANW -2.4%), Imperva (IMPV -3.8%), and Vasco (VDSI -3.1%) are following CyberArk lower. The group has rallied strongly in recent weeks.
Fri, Feb. 20, 4:42 PM
- With the help of strong earnings reports, government initiatives, and ongoing hacking scandals bolstering broader corporate interest in cybersecurity, security tech plays are refusing to take a breather. CyberArk (CYBR +9.4%), FireEye (FEYE +4.2%), Imperva (IMPV +8%), Palo Alto Networks (PANW +2.7%), Barracuda (CUDA +3.9%), and Vasco (VDSI +3.6%) were all standouts today.
- CyberArk is now up 93% since Feb. 9, thanks in no small part to its Q4 numbers. FireEye is up 29% since beating Q4 estimates and reporting strong billings on Feb. 11.
- The PureFunds ISE Cyber Security ETF (NYSEARCA:HACK) is up 17% in February.
Fri, Feb. 13, 2:50 AM
- President Obama is poised to sign an executive order today aimed at encouraging companies to share more information about cybersecurity threats with the government and each other.
- The order will set the stage for new private-sector led information sharing and analysis organizations, called ISAOs, where companies share cyber threat data with each other and the Department of Homeland Security.
- The move comes as big Silicon Valley companies prove hesitant to fully support more mandated cybersecurity information sharing without reforms to government surveillance practices.
- KEYW, CUDA, PFPT, FEYE +0.5%, PANW +1.3%, QLYS +3% CYBR +18.5% AH
- ETFs: HACK +4.7% AH
Mon, Jan. 12, 1:33 PM
- The White House has disclosed Pres. Obama will outline this week "a series of legislative proposals and executive actions that will be in his [Jan. 20] State of the Union that will tackle identity theft and privacy issues, cybersecurity, and access to the Internet."
- Several security tech plays, some of whom received a lift last month from the Sony hack and its fallout, are higher in spite of a 0.9% Nasdaq drop. FEYE +4.5%. CUDA +6.9%. PANW +1.2%. CYBR +1.7%. PFPT +1.3%.
- The gains come on a day in which the U.S. Central Command's (CENTCOM) Twitter and YouTube accounts have been hacked by ISIS supporters.
- ETFs: HACK
Dec. 18, 2014, 11:13 AM
- FireEye (FEYE +4.9%), recently hired by Sony to probe its massive hacking incident, is rallying strongly on an up day for equities after Sony cancelled The Interview's release in response to the hack and subsequent threats on movie theater chains.
- Other security tech names are also outperforming: PANW +3.2%. KEYW +3.9%. FTNT +2.6%. PFPT +3.2%. Imperva (IMPV +2.6%) is adding to the Wednesday gains it saw following a Deutsche upgrade.
Nov. 25, 2014, 2:30 PM
- At least nine firms have hiked their Palo Alto Networks (NYSE:PANW) targets in response to the company's FQ1 beat, above-consensus FQ2 guidance, and strong billings print. Shares have rallied to fresh highs after trading lower AH yesterday.
- "In a market that's growing at a 5%-10% clip, PANW's 50% revenue growth and 52% billings growth don’t imply any slowdown in the pace of market share gains," writes Deutsche ($125 PT). The firm observes Palo Alto's WildFire malware-detection service now has 4K paid customers, up from 3K a quarter ago and representing 19% of Palo Alto's total base.
- Likewise, Credit Suisse ($135 PT) thinks the FQ1 report highlights "Palo Alto's ability to upsell into its installed base." It's also happy with growing success in landing major enterprise accounts.
- Stifel ($120 PT) expects "“continued runway for both product revenue, driven by the growing adoption of the company's high-end data center appliances such as PA-7050, as well as recurring revenue, with growth in this arena coming from an improving attach rate and healthy maintenance renewal trends.”
- Needham ($123 PT): "We believe PANW continues to benefit from news about corporate data breaches, and as a mindshare leader in “next gen firewall” PANW is likely being short-listed on most large network security deals." It thinks FQ2 guidance is conservative.
- Peer Barracuda Networks (CUDA +3.1%) is also rallying.
Nov. 24, 2014, 5:43 PM
Nov. 24, 2014, 4:43 PM
- Palo Alto Networks (NYSE:PANW) expects FQ2 revenue $200M-$204M (+42%-45% Y/Y) and EPS of $0.16-$0.17, mostly above a consensus of $198.1M and $0.16.
- With subscriptions (paid upfront, but recognized quarter-by-quarter) now accounting for a large % of revenue, FQ1 free cash flow ($69M) was well above net income ($6.2M). Billings rose 52% Y/Y to $240.5M, exceeding revenue of $192.3M.
- Product revenue +34% Y/Y to $101.5M; services +71% to $90.9M. GAAP opex +60% to $162.6M - sales/marketing spend accounted for $106.4M.
- With shares having nearly doubled YTD going into earnings, expectations were high.
- FQ1 results, PR
Nov. 24, 2014, 4:06 PM| Comment!
Nov. 4, 2014, 4:27 PM
- In addition to missing Q3 revenue estimates (while beating on EPS), FireEye (NASDAQ:FEYE) is guiding for Q4 revenue of $135M-$147M, below a $144.2M consensus at the midpoint. EPS guidance is at -$0.46 to -$0.50 vs. a -$0.50 consensus.
- In spite of the revenue miss, Q3 billings totaled $165.1M, +45% Q/Q and above guidance of $150M-$155M. Q4 billings guidance is at $195M-$210M, and full-year guidance has been hiked to $573M-$588M from $560M-$580M.
- Q3 product revenue +104% Y/Y to $48.4M; subscription/services revenue +248% to $65.8M. Both figures were boosted by the Mandiant acquisition.
- Spending remains aggressive: Excluding restructuring charges, GAAP opex (also boosted by Mandiant) rose 157% to $196.5M.
- Peers are also off: PANW -3.5% AH. CUDA -1.9%.
- Q3 results, PR
Oct. 23, 2014, 12:03 PM
- Check Point (CHKP +4.2%) beat Q3 estimates and offered healthy Q4 guidance: Revenue of $395M-$430M and EPS of $0.99-$1.09 vs. a consensus of $410.3M and $1.03.
- Fortinet (FTNT -0.1%) posted a Q3 beat, reported strong billings growth, and issued above-consensus Q4 revenue guidance. EPS guidance was light due to aggressive spending.
- Several security tech peers are outperforming on a day the Nasdaq is up 1.7%. PANW +4.4%. FEYE +4.5%. PFPT +4.9%. QLYS +2.7%. The numbers follow downbeat guidance from IBM, SAP, and VMware, and arguably highlight security's growing share of IT spend.
- Oppenheimer is reiterating an Outperform and $30 target on Fortinet, and notes the company's new billings guidance implies 26% 2014 growth at the midpoint (up from 22%). It thinks the UTM hardware vendor's performance is being driven by strong high-end appliance sales, product refreshes, and the fruits of major sales/marketing investments.
Oct. 6, 2014, 12:28 PM
- Morgan Stanley's Keith Weiss has downgraded Fortinet (FTNT -3.1%) to Equal-weight, albeit while keeping his $29 target.
- Though admitting the UTM security hardware vendor's big sales/marketing and R&D investments are bearing fruit, Weiss doesn't like the face sales productivity (as measured by the ratio of product billings to sales/marketing spend) has been declining over the last 6 quarters.
- He adds sustaining Fortinet's current billings growth could be challenging in 2015. Fortinet has guided for 22% 2014 billings growth.
- Peers Palo Alto Networks (PANW -2.3%) and FireEye (FEYE -3%), both of whom have also been making big sales investments, are also lower. Palo Alto received a bullish Piper note on Friday, while FireEye was hit by a Northland Securities downgrade.
Oct. 3, 2014, 9:57 AM
- Piper's Andrew Nowinski: "Our 3Q14 survey results indicate demand for Palo Alto (NYSE:PANW) improved in Q3 (50% of resellers above plan) and the pipeline for Q4 was even stronger, with 67% of resellers expecting better-than-normal seasonality."
- Nowinski also thinks Palo Alto's just-launched Traps endpoint security offering will "drive further upside" to FY16 (ends July '16) estimates. His target has been hiked by $10 to $120.
- Shares are making new highs, and are up 82% YTD.
- Update: JPMorgan's data breach is also likely providing a lift to shares.
Sep. 9, 2014, 5:36 PM
Sep. 9, 2014, 4:17 PM
- FQ4 non-GAAP net income of $9.1M or $0.11 per share vs. $5.5M and $0.07 one year ago.
- FQ1 revenue guidance of $178M-$182M represents growth of 39-42% Y/Y. Non-GAAP EPS guidance of about $0.12 based on 83-85M shares.
- Conference call at 4:30 ET
- Previously: Palo Alto Networks EPS in-line, beats on revenue
- PANW +1.3% after-hours in active action.
Sep. 9, 2014, 4:07 PM
PANW vs. ETF Alternatives
Palo Alto Networks Inc offers an enterprise network security platform that allows enterprises, service providers, and government entities to secure their networks and safely enable applications running on their networks.
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