UPDATE: Stifel Initiates Coverage on Proofpoint
In a report published Wednesday, Stifel analyst Todd Weller initiated coverage on Proofpoint (NASDAQ: PFPT) with a Buy rating, establishing a $43.00 price target.
According to the report, the Buy rating and price target are based on an EV/revenue multiple of 8.5x the analyst's 2015 revenue estimate.
“We view Proofpoint as an attractive and differentiated growth story in the security market,” the report noted. “While Proofpoint's profitability profile reflects investing for growth, over the next few years, we expect to see more meaningful progress towards its target model. Valuation is not cheap but appears to be in-line with other high-growth names. We believe the combination of attractive growth, potential upside to estimates, scarcity value, and consolidation potential could driver further upside in the shares.”
PFPT closed Tuesday at $36.96 with shares trading up at 3.41 percent.
Latest Ratings for PFPT
|Feb 2016||Imperial Capital||Upgrades||In-line||Outperform|
|Jan 2016||Credit Suisse||Maintains||Outperform|
|Jan 2016||JMP Securities||Maintains||Market Outperform|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.