Guggenheim upgrades Palo Alto to Neutral after underperformance

Guggenheim analyst John DiFucci late Friday upgraded Palo Alto Networks (PANW) to Neutral from Sell without a price target The stock has significantly underperformed the major indices, making it more difficult to make money shorting Palo Alto at this time, the analyst tells investors in a research note. The firm believes Palo Alto Networks should continue to benefit from the narrative as the largest pure-play vendor in the security space. The sector is “somewhat insulated, if not boosted by the threat of AI,” contends Guggenheim.