Analyst Steve Koenig of Wedbush discussed his expectations for FireEye Inc (NASDAQ:FEYE) upcoming second-quarter earnings report that is set to be released after markets close on August 4th. The analyst is expecting revenue to disappoint due to a lag in product sales. He fears this could ultimately lead to a decrease in full-year revenue guidance.

Koenig’s contacts at VARs believes there is mixed demand for FireEye’s product. The analyst thinks is because of its small sample size of inbound inquires and historical success with FEYE. On the other hand, qualitative commentary seems to indicate that cheaper options are good enough to replace FireEye and is “pressuring FEYE in the market.”

FireEye’s stock has been steady since Kevin Mandia, Mandiant founder and former FireEye president, became CEO. Koenig believes this is because Mandia becoming CEO has decreased the changes of FEYE being sold. An encouraging sign though is that in the middle of June there were rumors concerning interest for FireEye.

If FireEye is able to steady its revenues over the next few quarters the analyst believe the stock has potential to increase. Nonetheless, he feels that it is more likely that revenue disappoints as “firewall vendors continue to gain traction with cheaper alternatives for network-based advanced threat protection.”

The analyst reiterated his Neutral rating on FireEye with a price target of $16, marking a 6% decline from current levels.

According to TipRanks, the analyst has a yearly average return of 6% and a 54% success rate. The analyst has a 29.3% average loss when recommending FireEye, and is ranked #784 out of 4,085 analysts.

TipRanks shows that out of the 11 analysts who rated FireEye in the last 3 months, 55% gave a Buy rating, and 45% gave a Hold rating. The average 12-month price target for the stock is $24.29, marking a 39.44% upside from current level.