Oppenheimer analyst Shaul Eyal weighed in today with a favorable report on FireEye Inc (NASDAQ:FEYE), upgrading shares from a Market Perform to an Outperform rating and setting a price target of $58, which implies an upside of 25% from current levels.
Eyal explained that his bullish conviction about FireEye was due to: “1) Positive 2Q checks suggesting results could come ahead of mid-point rev. guidance (Street at $143M, up 51.3% YoY). 2) With more measured opex controls and a shifting business model (toward SaaS), we see LT operating leverage in the model. 3) With a constant 90% renewal rate, we believe FEYE’s 2019 $2B billing target, which serves as the basis for improved profitability, is highly feasible.”
Furthermore, the analyst noted, “While our estimates remain intact, we see room for upside earnings revision and use CHKP’s results reaction from last week as an analogy to FEYE’s potential price reaction driven by a sentiment change.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Shaul Eyal has a total average return of 20.1% and a 73.6% success rate. Eyal has a average return when recommending FEYE, and is ranked #19 out of 3718 analysts.
FireEye shares are trading up 2.50% at $46.83 as of 12:40 p.m. EDT today.