Summit Research Starts FireEye, Inc (FEYE) at Buy

Summit Research initiates coverage on FireEye, Inc (NASDAQ: FEYE) with a Buy rating and a price target of $35.00.

Analyst Srini Nandury commented: "We are initiating coverage of FireEye with a BUY rating and a $35 PT, based on EV/C2016 sales multiple of 6.0x, inline with the high growth security peer group average. While the company is the gold standard in the industry to intercept and remediate APT (Advanced Persistent Threats), the recent execution missteps in Europe lead to a significant billings miss in F3Q15. Combined with the departure of key people (CFO & CTO), the sentiment on the stock is bearish with the stock pulling back to multi-year lows. The stock is currently trading at 3.7x on an EV/Sales multiple versus the security peer group at 6.1x (FEYE is cheap despite having growth of 28% versus the peer average of 25%). While it is entirely possible that the company can provide 2016 revenue/billings outlook that is below consensus, we believe the pullback of shares from current levels is limited. Also providing support for the stock is our belief that FireEye could make a very attractive potential acquisition. Therefore, with limited downside, we believe the risk/reward profile is favorable to investors who can weather the uncertainty that comes with owning the stock in the near-term."

For an analyst ratings summary and ratings history on FireEye, Inc click here. For more ratings news on FireEye, Inc click here.

Shares of FireEye, Inc closed at $20.74 yesterday.

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