Robert W. Baird Believes PFPT Still Has Room to Grow

By Carrie Williams

Robert W. Baird analyst Jayson Noland initiated coverage with a Buy rating on Proofpoint Inc. (NASDAQ: PFPT) today. The company’s shares opened today at $83.22, close to its 52-week high of $84.50.

Noland said:

“We expect long-term FCF and operating margin expansion to support long-term valuation. Large potential TAM. In addition to its core market of email security, Proofpoint has launched products for advanced persistent threats (APT) and archiving and governance. These market categories reach a $10 billion TAM, and we note that with less than 20% of Proofpoint’s customers outside of the United States, the company maintains significant room for geographic expansion. Thought leader taking share. Proofpoint’s email security solution is among the best-rated technologies from industry experts, notching the farthest right position in Gartner’s Magic Quadrant for many years. We expect such a technology consensus to help maintain market share growth, especially given Proofpoint has currently captured less than 20% share.”

According to TipRanks.com, Noland is a 4-star analyst with an average return of 7.9% and a 55.9% success rate. Noland covers the Technology sector, focusing on stocks such as Hewlett Packard Enterprise, Riverbed Technology, and Palo Alto Networks.

Proofpoint Inc. has an analyst consensus of Strong Buy, with a price target consensus of $80.25.

The company has a one year high of $84.50 and a one year low of $35.56. Currently, Proofpoint Inc. has an average volume of 635.2K.

Based on the recent corporate insider activity of 74 insiders, corporate insider sentiment is neutral on the stock. Most recently, in August 2016, Evan-Dana L, a Director at PFPT sold 4,500 shares for a total of $338,895.

Proofpoint, Inc. is a security-as-a-service provider that enables large and mid-sized organizations worldwide to defend, protect, archive and govern their most sensitive data. It solutions are built on a flexible, cloud-based platform and leverage a number of proprietary technologies-including big data analytics, machine learning, deep content inspection, secure storage, advanced encryption, intelligent message routing, dynamic malware analysis, threat correlation, and virtual execution environments-to address today’s rapidly changing threat landscape. The company was founded by Eric Hahn in June 2002 and is headquartered in Sunnyvale, CA.