04:29 PM EDT, 05/21/2024 (MT Newswires) -- Palo Alto Networks' ( PANW ) fiscal Q3 results disappointed bullish investors given high investor expectations, while billings remained in line despite improved booking trends due to discounted deals, UBS Securities said Tuesday in a report.

"Billings pressure from discounted platform deals will likely persist into fiscal year 2025," UBS said.

The company pegged billings, which consist of revenue plus deferred revenue, at $10.13 billion to $10.18 billion for fiscal 2024 versus $10.1 billion to $10.2 billion, On Monday, the company reported fiscal Q3 non-GAAP net income and revenue that topped expectations by analysts.

The company has reported 900 "platformization" deals and sees the fiscal year 2030 next-generation security annual recurring revenue guide of $15 billion as "achievable with 2,500 to 3,500 platform deals," UBS said.

UBS reiterated its neutral rating on Palo Alto's stock and kept the price target at $300.

Shares of Palo Alto Networks ( PANW ) fell 0.2% in recent after-hours trading after dropping 3.7% in the regular session Tuesday.

Price: 311.12, Change: -0.54, Percent Change: -0.17