Palo Alto Networks stock rallies, Fortinet stock falls following Deutsche Bank comments

Shares of Palo Alto Networks Inc. are up 2.4% in Tuesday morning trading after analysts at Deutsche Bank upgraded the stock to buy, while shares of Fortinet are down 2% following a downgrade to hold. Deutsche Bank’s Karl Keirstead thinks Palo Alto Networks looks attractive, given that it’s trading at 13 times free-cash-flow estimates for the 2018 calendar year. “The last few quarters have been relatively clean, overall firewall demand appears to be stabilizing and our latest round of field checks (on 4Q17 demand and the 2018 outlook) for the company were positive,” Keirstead wrote. His channel checks for Fortinet, meanwhile, were mixed or negative, with Keirstead noting that “multiple contacts indicated that demand in Q4 was soft.” Shares of Palo Alto Networks have recovered their losses from Monday, which came after analysts at Goldman Sachs downgraded the stock to neutral. Palo Alto Network shares are up 11% over the past 12 months, while shares of Fortinet are up 38% in that time and the S&P 500 is up 25%.

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