Palo Alto Networks downgraded to Sell at Guggenheim on declining new ARR

As previously reported, Guggenheim analyst John DiFucci downgraded Palo Alto Networks (PANW) to Sell from Neutral with a $130 price target The stock is up 40% from its February 21 low of the last year despite the fact that Palo Alto has reported “several questionable” quarters over the last year or more and even though new ARR for the total business has declined in each of the last five quarters, the analyst tells investors. While the firm says it understands investors’ confidence that management will do “whatever it takes to succeed as the leading market share vendor in cyber security,” it cannot help but consider its overall business performance, field checks that indicate subtle softening in momentum over the last year, and expected Federal IT spending moderation, the analyst added.