FireEye (FEYE) Beats Low Expectations but Price Target Lowered at Deutsche Bank on Sector Re-Valuation

Deutsche Bank maintained a Hold rating on FireEye, Inc (NASDAQ: FEYE) but lowered its price target to $20.00 (from $30.00). Comments follow FireEye's positive pre-announcement. Analyst Karl Keirstead maintain a Hold rating due to FireEye's "balanced risk reward profile." The price target change relates to re-valuation across the software sector.

"FireEye (FEYE) pre-announced a modest 4Q15 revs beat and set preliminary 2016 guidance ahead of the Feb 11 earnings report date, likely in response to the material recent sell-off in the stock (down 30% in the last 2 weeks). In our view the reported numbers beat the low Street expectations. FEYE also announced the acquisition of privately-held threat intelligence software vendor iSIGHT for $275m ($200m in cash, $75 in earn-outs), equal to 5-6x 2015 billings of $50m and 7x 2015 revs of $40m. We like this security segment and the deal rationale/economics seem reasonable," said Keirstead.

"FireEye (FEYE) pre-announced a modest 4Q15 revs beat and set preliminary 2016 guidance ahead of the Feb 11 earnings report date, likely in response to the material recent sell-off in the stock (down 30% in the last 2 weeks). In our view the reported numbers beat the low Street expectations. FEYE also announced the acquisition of privately-held threat intelligence software vendor iSIGHT for $275m ($200m in cash, $75 in earn-outs), equal to 5-6x 2015 billings of $50m and 7x 2015 revs of $40m. We like this security segment and the deal rationale/economics seem reasonable. Maintain HOLD rating due to balanced risk reward profile," added the analyst.

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 $14.87 yesterday.

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