Wedbush removed Palo Alto Networks (NASDAQ:PANW) from its "Best Ideas List" on Monday, stating that they believe near-term upside in the stock is limited.
The firm's analysts explained that they believe it is limited due to some fears around the growth in the cyber security sector, "which is an overhang on the name."
Shares of PANW are down around 1% at the time of writing Monday, adding to its more than 8% decline last Friday. However, the stock is still up a healthy 54% in 2023.
Morgan Stanley said in a note that "Management's surprising decision to host a 2-hour call on a Friday to provide FQ4 earnings AND mid-term FY26 targets has apparently fueled a sell-off in PANW shares."
"We're still unclear why they chose this timing, other than for scheduling reasons (multiple executives will be presenting on the upcoming call)," the analysts commented.