Proofpoint Inc Receives a Rating Update from a Top Analyst

By Jason Carr

Oppenheimer analyst Shaul Eyal maintained a Hold rating on Proofpoint Inc (NASDAQ: PFPT) today. The company’s shares opened today at $118.90, close to its 52-week high of $123.87.

Eyal said:

“We are updating our model following the closure (March 1st) of Proofpoint’s Wombat Security acquisition. For 1Q18, PFPT has raised revenue guidance to $151-153M (+34% YoY midpoint) from $149-151M but tweaked net income guidance to $7.5-8.5M from $8-9M. We adjust our 1Q revenue/net income estimates to $152.1M/$8.2M ($0.15 EPS) from $150.3M/$9.0M ($0.16 EPS). For FY18, PFPT increased revenue guidance to $691-696M (+34.5% YoY midpoint) from $660-665M but lowered net income guidance to $46-50M from $52-56M. We are tweaking our FY18 revenue/ net income estimates to $694.3M/$48.1M ($0.85 EPS) from $662.6M/$56.4M ($1.00 EPS). For FY19, we are raising estimates to $866.1M/$87.2M ($1.52 EPS) from $827.4M/$84.9M ($1.48 EPS).”

According to, Eyal is a top 100 analyst with an average return of 13.7% and a 66.9% success rate. Eyal covers the Technology sector, focusing on stocks such as CSG Systems International, Nuance Communications, and IAC/InterActiveCorp.

Proofpoint Inc has an analyst consensus of Strong Buy, with a price target consensus of $119.

Based on Proofpoint Inc’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $145 million and GAAP net loss of $10.96 million. In comparison, last year the company earned revenue of $107 million and had a GAAP net loss of $22.88 million.

Based on the recent corporate insider activity of 88 insiders, corporate insider sentiment is negative on the stock. Last month, Robert Darren Lee, the SVP, GM Archiving & Governance of PFPT sold 18,139 shares for a total of $1,772,711.

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Proofpoint, Inc. is a security and compliance company, which engages in the provision of cloud-based solutions. Its security-as-a-service platform comprises of on-demand data protection solutions, including threat protection, incident response, regulatory compliance, archiving, governance, eDiscovery, and secure communication.