FireEye Inc Receives a New Rating from Top Analyst

By Austin Angelo

Oppenheimer analyst Shaul Eyal reiterated a Buy rating on FireEye Inc (NASDAQ: FEYE) today and set a price target of $28. The company’s shares closed yesterday at $11.01, close to its 52-week low of $10.87.

Eyal noted:

“In spite of quarterly distractions (restructuring, sales leadership changes), FEYE reported solid 3Q16 results exceeding Consensus’ revenue, operating margin, loss per share, and cash flow estimates. While prudently tweaking revenue and billings estimates for 4Q16 (new head of WW sales has yet to start and no EMEA leader yet), FEYE remains focused on accelerating its path to profitability by improving its bottom line’s guidance. Metrics regarding contract/customers remain largely unchanged and we believe 4Q16 outlook is highly achievable. It would appear that FEYE’s management team is steering the ship in the right direction and we expect no near-term fumble. We are adjusting our estimates to reflect the path to profitability improvement and view current valuation of 2.3x EV/FY17 revenue as compelling.”

According to TipRanks.com, Eyal is a top 100 analyst with an average return of 9.1% and a 56.3% success rate. Eyal covers the Technology sector, focusing on stocks such as CSG Systems International, Nuance Communications, and IAC/InterActiveCorp.

FireEye Inc has an analyst consensus of Hold, with a price target consensus of $16.94.

The company has a one year high of $24.16 and a one year low of $10.87. Currently, FireEye Inc has an average volume of 4.88M.

Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FEYE in relation to earlier this year. Most recently, in May 2016, Kevin Mandia, the President of FEYE bought 27,600 shares for a total of $350,520.

FireEye, Inc. develops virtual machine-based security platform that provides real-time protection to enterprises and governments worldwide against the next generation of cyber attacks. The FireEye Threat Prevention Platform provides real-time, dynamic threat protection without the use of signatures to protect an organization across the primary threat vectors, including Web, email, and files and across the different stages of an attack life cycle. Its virtual machine-based security platform is a virtual execution engine, complemented by dynamic threat intelligence, to identify and block cyber attacks in real time. The company was founded by Ashar Aziz on February 18, 2004 and is headquartered in Milpitas, CA.