FireEye Inc (FEYE) Valuation and Sentiment Trumped by Fundamentals: Wedbush
Wedbush analyst Steven Koenig was out with a research note on shares of FireEye Inc (NASDAQ:FEYE), as the cybersecurity software maker will be reporting third-quarter results after the market close on Thursday, November 3rd. Koenig remains on the sidelines on FEYE, reiterating a Neutral rating and price target of $13, which represents a potential upside of 6% from where the stock is currently trading.
Koenig wrote, “Given the high short interest and negative price action for FEYE in October, FEYE shares ought to be poised for a post-earnings bounce if the company can achieve its guidance range and leave full-year guidance intact. With shares now trading at 2.6x EV/ FY16E revenue, we wouldn’t advise keeping shorts on FEYE into the print. However, we’re also not inclined to be long, as we don’t have much confidence that the company’s pipeline and close rates haven’t deteriorated further in 3Q, given the negative tone of our checks concerning FEYE’s lack of price competitiveness.”
As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Steven Koenig has a yearly average return of 4.6% and a 50% success rate. Koenig has a 29.3% average loss when recommending FEYE, and is ranked #989 out of 4180 analysts.
Out of the 28 analysts polled by TipRanks, 19 rate FireEye stock a Hold, while 9 rate the stock a Buy. With a return potential of 86%, the stock’s consensus target price stands at $22.88.