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UPDATE: JPMorgan Downgrades FireEye

In a report published Tuesday, JPMorgan analyst Sterling Auty downgraded FireEye (NASDAQ: FEYE) to Neutral from Overweight, raising its price target to $75.00 from $64.00.

According to the report, the coupling of a disruptive security technology, experienced management, high growth results, timely acquisition and limited float created a powerful environment for FEYE stock.

“One that has driven FEYE up 96% since the close on December 12 as compared to only 5% for the NASDAQ composite index,” the report noted. “We are raising our price target to $75, but that only leaves ~2% from current levels and thus we are downgrading to Neutral from Overweight. We still consider FireEye to be the most disruptive name in security and it should continue to show significant upside to current estimates, but at these price levels we believe the valuation is factoring in the majority of that opportunity.”

Some highlights from the report included:

-Preliminary 4Q13 results given at the time of Mandiant acquisition, so that catalyst is done -Limited float has played a part -Raising price target to $75 based on DCF

FEYE closed Friday at $71.62.

Latest Ratings for FEYE

DateFirmActionFromTo
Dec 2014JMP SecuritiesInitiates Coverage onMarket Perform
Nov 2014MacquarieInitiates Coverage onNeutral
Nov 2014NomuraMaintainsBuy

View More Analyst Ratings for FEYE
View the Latest Analyst Ratings

Posted-In: JPMorgan Sterling AutyAnalyst Color Downgrades Price Target Analyst Ratings

 

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