Today, analysts from FBR & Co. weighed in on cybersecurity software maker FireEye Inc (NASDAQ:FEYE) and solar power company Canadian Solar Inc. (NASDAQ:CSIQ) in light of Canadian Solar’s plans to create a yield company and FireEye’s preliminary guidance announcement.

FireEye Inc

Yesterday, FireEye announced it had acquired iSIGHT Partners, a private cyber threat intelligence company, for $200 million in cash with the potential for an additional $75 million in cash or equity once booking targets are reached. Alongside this announcement, FireEye announced preliminary 4Q earnings figures of $184 million to $185 million in revenue and a loss per share of ($0.36) to ($0.38). This is relatively in-line with the Street’s estimates of $186 million in revenue and EPS of ($0.37).

Daniel Ives of FBR & Co. points out that FireEye has been through a “roller coaster ride” since integration from the Mandiant acquisition has proven to be a nightmare. He explains, “While we view this quarter/billings performance and initial 2016 outlook as a step in the right direction, there is still heavy lifting ahead for the company to prove the sustainability of its growth while making the path to profitability over the next few years.”

Overall, the analyst notes, “Cybersecurity spending remains healthy into 2016 as the threat environment remains unprecedented and catalyzes enterprises/governments to upgrade its network/threat protection across the board. That said, a rising tide will not lift all boats (e.g., Barracuda), as we believe vendors such as Palo Alto, Check Point, Proofpoint, and Imperva stand to be major beneficiaries of this spending trend for the coming years.” As such, the analyst reiterated his Market Perform rating on the company without a price target.

Daniel Ives has a 39% success rate recommending stocks with an average loss of 1.9% per call. According to TipRanks, 7 analysts are bullish on FEYE while 7 remain on the sidelines. The average 12-month price target between these 14 analysts is $31.23, marking a 110% potential upside from current levels.FEYE consensus

Canadian Solar Inc.

Today, Carter Driscoll of FBR & Co. maintained his Overweight rating on Canadian Solar with a $32 price target after meeting with the company’s management. Driscoll left the meeting feeling optimistic about the company’s potential to build a yield company, its marketing position, and its improving demand.

The analyst believes that Canadian Solar is likely to wait until the second half of the year to create a yield company, which is later than he originally anticipated due to deteriorating market conditions. A yield company is formed to generate cash flow but owned by a parent company. Driscoll explains, “Assuming market conditions permit, Canadian Solar wants to largely launch the vehicle with operating assets (grid-connected) and keep the structure straight forward to promote clarity and simplicity.” If a yield co doesn’t work out, the analyst believes the company may pursue other options such as a private yield company; partial asset sales with a modestly funded yield company; or selling operating projects.

Additionally, the company’s module’s business remains strong. Driscoll explains, “The company is sold out for 4Q15 and is in the process of building out module manufacturing capacity for increasing levels of demand.” The stock is currently inexpensive and he “[continues] to see substantial upside potential even if the Yield Co. strategy ultimately does not come to pass.”

Carter Driscoll has a 14% success rate recommending stocks with an average loss of 24% per call. According to TipRanks, 4 analysts are bullish on CSIQ. The average 12-month price target between these 4 analysts is $35.67, marking an 88% potential upside from current levels.

CSIQ consensus