Koenig commented, “FEYE has built a leading position in next-generation cybersecurity and is growing rapidly due to adoption of its technology for advanced threat protection, growing awareness of the FireEye brand in the wake of major breaches investigated by the company, and revenue synergy with the acquired Mandiant products and services. FEYE’s high multiples create a risk that shifts in sentiment or execution risks could lead to meaningful share price corrections.”
“Also, fundamental risks include any reduction in the efficacy of FEYE’s technology as advanced threats evolve, heightened competition from Palo Alto Networks or incumbent security platform vendors such as Cisco (CSCO, OUTPERFORM) or Intel (INTC, OUTPERFORM), or disappointing progress towards profitability.”, the analyst also noted.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Steven Koenig has a total average return of 11.9% and a 60.0% success rate. Koenig is ranked #812 out of 3632 analysts.
Out of the 22 analysts polled by TipRanks, 13 rate FireEye Inc stock a Buy, while 9 rate the stock a Hold. With a downside potential of 10.6%, the stock’s consensus target price stands at $46.07.