Palo Alto Networks falls as Bernstein downgrades to 'market-perform'

By Reuters News

** Shares of cybersecurity company Palo Alto Networks PANW.O down ~2% at $366.59 premarket

** Bernstein downgrades stock to "market-perform" from "outperform"

** Raises PT to $351 from $253 after increasing its sales multiple to 21x from 14x

** Says PANW now appears fairly valued relative to its updated sector valuation framework, with limited upside after a recent re-rating

** Adds AI-driven demand tailwinds and Flex contracts are helping support cybersecurity growth, but cautions current sector valuations imply a degree of growth acceleration that may be difficult to achieve

** 44 of 56 brokerages rate the stock "buy" or "higher", 11 "hold" and one "sell"; their median PT is $410 - data compiled by LSEG

** Up to last close, stock up nearly 104% YTD

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