Market Overview

UPDATE: Citigroup Initiates Coverage on FireEye

Share:
Related
Cramer Prefers CyberArk Over FireEye, Says NVIDIA Will Benefit From Pokemon Go
Imperial Capital's Favorites In Cybersecurity Ahead Of Q2 Earnings

Share of FireEye (NASDAQ: FEYE) are down 7.8 percent, adding to significant losses incurred over the past month. Citigroup initiated coverage on Friday morning with a Neutral rating and $60 price target.

Citi believes FireEye “can maintain hyper-growth status over the next 10 years, with long-term revenue growth of 30%, but also achieving 27% terminal op margins.”

The firm sees a conflict between long-cycle valuations and short-cycle valuations. While FireEye is the “undisputed leader in advanced persistent threat mitigation,” new threats and technologies may initiate a new short-cycle in the security market.

The idea of FireEye being acquired was shut down by Citi because at “a $9B market cap, few large tech companies have the resources to buy FEYE or stomach the valuation.”

Citi believes FireEye will eventually have to “transition from a point product vendor in an undefined market category (APT mitigation) to competing more directly in mainstream product categories (firewall, email security, secure web gateway) where the bulk of security budget lives.”

Shares of FireEye are down a massive 47 percent from the all-time high of $97.35 set in early March.

Latest Ratings for FEYE

DateFirmActionFromTo
Mar 2016Goldman SachsInitiates Coverage onNeutral
Mar 2016UBSMaintainsNeutral
Mar 2016BarclaysMaintainsEqual-weight

View More Analyst Ratings for FEYE
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Analyst Ratings Movers Tech

 

Related Articles (FEYE)

View Comments and Join the Discussion!