UPDATE: Goldman Sachs Initiates Coverage on FireEye with Neutral Rating, $35 PT on Market Leader Position

In a report published Tuesday, Goldman Sachs analyst Greg Dunham initiated coverage on

with a Neutral rating and $35.00 price target. In the report, Goldman Sachs noted, “We initiate with a Neutral rating on FireEye, whose technology enables government organizations and enterprises to counteract cyber threats. FEYE is posting hyper growth (2Q revenues +109% yoy) as it benefits from customer adoption (+78% yoy) and new enterprise architectures in concert with a next generation of attacks (e.g., spear phishing, Advanced Persistent Threats) that make signature-based solutions less effective. FireEye is investing (headcount +228% yoy) to capture the opportunity. Despite our positive view, at 25x 2014 EV/Sales vs. hyper growth peers at 15x, we believe shares price in significant optimism, and we see limited near-term outperformance.” FireEye closed on Monday at $41.55.