UPDATE: Stifel Nicolaus Raises PT to $64 on Sourcefire; Expanding Opportunity
Stifel Nicolaus raises its price target from $46 to $64 on Buy-rated Sourcefire (NASDAQ: FIRE) as latest quarterly growth points to expanding opportunity.
Stifel Nicolaus notes, "Sourcefire delivered another solid quarter in which top line growth of 50% marked further growth acceleration. We believe the strong performance reflects a strong network security demand environment, benefits from distribution expansion, an improved Fed spending backdrop, and some early product cycle benefits. We reiterate our Buy rating and are increasing our target price to $64. Our target represents an EV/revenue multiple of approximately 6.5x our 2013 estimate though our thought process revolved more around 2013 EPS power potential and we see our target implying approximately 40x potential earnings power."
FIRE closed at $50.99 on Monday.
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