UPDATE: Topeka Capital Markets Reiterates Buy Rating, Raises PT on Sourcefire on Raised Multiple Assumption

In a report published Wednesday, Topeka Capital Markets analyst Frederick Ziegel reiterated his Buy rating on Sourcefire

, and raised its price target from $50.00 to $66.00. In the report, Ziegel noted, “We are reiterating our Buy rating on FIRE and raising our price target to $66 from $50 to reflect a higher multiple assumption on our 2014 estimate. We are raising our multiple assumption based on three factors: 1) Sourcefire is one of the best positioned security companies with exposure to NGFW, NGIPS and Anti-Malware detection; 2) Expanding operating margins of 800-1100bps over time and; 3) in the shorter term, upside to the current Federal Government business. Our $66 price target is based on the stock selling at 2.0x an estimated 25% long-term EPS growth rate on our 2014 EPS estimate of $1.32. Further detail in our report.” Sourcefire closed on Tuesday at $57.80.