Goldman Sachs Starts Proofpoint (PFPT) at Buy

Goldman Sachs initiates coverage on Proofpoint (NASDAQ: PFPT) with a Buy rating and a price target of $42.00.

Analyst Matthew Niknam cited: (1) leveraging its SaaS delivery model, the company continues to rapidly take share in its key product areas at the expense of larger, less nimble peers, (2) new product offerings and recent investments should sustain billings/revenue momentum in the near-term (our estimates are above consensus in CY2014/2015), and (3) Despite its high-growth (CY204-CY2017 revenue CAGR of 20%), the company recently turned FCF positive, and is on the cusp of a rapid acceleration in FCF generation in upcoming years.

The analyst also believes PFPT may be a beneficiary of industry M&A.

For an analyst ratings summary and ratings history on Proofpoint click here. For more ratings news on Proofpoint click here.

Shares of Proofpoint closed at $33.26 yesterday.

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