Stifel analyst Gur Talpaz said that after conducting multiple channel checks with key Palo Alto partners following the conclusion of the company's fiscal first quarter he believes shipment activity reverted back to a more normalized pattern this quarter. Given a return to more normalized supply chain activity, along with incrementally more discounting due to product maturity, he thinks investors should "temper their expectations" about the magnitude of potential Q1 upside. Talpaz lowered his price target on Palo Alto shares to $240 from $260, but maintains a Buy rating on the stock.