UPDATE: FBN Securities Reiterates Outperform Rating, Lowers PT on FireEye as Billings Growth is Still Robust

In a report published Wednesday, FBN Securities analyst Shebly Seyrafi reiterated an Outperform rating on FireEye FEYE, but lowered the price target from $50.00 to $45.00. In the report, FBN Securities noted, “We retain our Outperform rating on FEYE and lower our PT from $50 to $45. The company reported billings results above consensus, but we expect the stock to exhibit weakness today due to the following reasons: 1.) FQ3 revenue of $114M came in below consensus of $116M; 2.) FQ4 billings guidance of $195-210M has a lower high-end ($210M) than the prior implicit guidance for the high-end of FQ4 billings, which was $215-220M; 3.) DSO grew to 123 days, up 20 days Q/Q, as the quarter was back-end loaded; and 4.) a rising average contract length for new orders as this metric was 34 months (due to having many 5-year government deals) vs. 31 months in FQ3 2013 (so the quality of the billings growth was a bit weaker).” FireEye closed on Tuesday at $34.25.