Credit Suisse analyst Brad Zelnick lowered his price target for Pivotal Software to $20 from $25 following disappointing Q1 results that sent the stock down nearly 30% in after-hours trading. Results and guidance lead him to believe the shift to containerized architecture and Kubernetes is more disruptive to Pivotal than he originally expected. At the same time, with the stock now trading at 5.6 times EV/Recurring Revenue, Zelnick pivots to a more value-oriented thesis as he believes the equity is now priced in line with the intrinsic value of its installed base business. The analyst reiterates an Outperform rating on the shares.