Citi analyst Walter Pritchard lowered the firm's price target on Palo Alto Networks to $250 from $283 and keeps a Buy rating on the shares. While lower product revenue headlined the Q2 results, the company's cloud leadership is still clear, Pritchard tells investors in a research note. Customer additions "remained healthy" at 2,500 and annuity revenue, even that attached to appliances remained strong, says the analyst.

Cleveland Research analyst Ben Bollin said his checks suggest that the momentum Palo Alto Networks had exiting April end quarter has extended into June, as he is hearing about favorable demand for next gen application deployments and "encouraging" appliance feedback. The analyst, who also said he is hearing the pipeline appears favorable, has a Buy rating on Palo Alto shares.