Bank Of America: Evolving Threat Landscape Favorable For FireEye

Tal Liani of Bank of America met with FireEye Inc's FEYE management team in New York to discuss the company's prospects. "We believe management delivered a strong message on growing demand for advanced malware protection solutions driven by the worsening threat landscape," Liani wrote in a note to clients on Friday. "Companies are increasing security budgets and re-thinking their security architectures." Liani exited the meetings with a bullish view on the stock for three reasons. First, the analyst notes that Street expectations on FireEye's performance are low following three consecutive quarterly earnings “hiccups.” Second, Fireye is a market leader in one of the fastest growth segments in technology. Finally, Fireye operates with a “superior technology” that should allow the company to achieve Street estimates in 2015. Bottom line, FireEye's management team continues to drive technical and product differentiation, according to Liani. The analyst notes that new products, services and partnerships could drive incremental growth while the recently launched FireEye-as-a-Service (FaaS) addresses customers' needs for high-end scalable solutions without a heavy upfront cost. Shares are Buy rated with a $44 price target.