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Evercore ISI Maintains Their Buy Rating on Proofpoint Inc (PFPT)


Evercore ISI analyst Kenneth Talanian maintained a Buy rating on Proofpoint Inc (NASDAQ: PFPT) on September 28 and set a price target of $135. The company’s shares closed on Friday at $106.33.

Talanian commented:

“We believe this is largely a reflection of concern around the company’s forthcoming F19 revenue growth guidance. Recall that the company made two sizeable acquisitions (Cloudmark [Nov 17], Wombat [Feb 18]) that contribute to F18 results which the company anniversaries in F19. Management noted that organic growth for F18 is expected to be ~29%.We believe current consensus for F19, which calls for ~27.5% growth, is mostly based on the street’s assumption that revenue will naturally decelerate from the stated F18 organic levels. The stock currently reflects an expectation that management may guide below the street, in our view. We have revised our model to reflect growth in line with the street for F19 and are extending our model to F21.”

According to TipRanks.com, Talanian is a 5-star analyst with an average return of 20.2% and a 80.4% success rate. Talanian covers the Technology sector, focusing on stocks such as Symantec Corp, Check Point, and FireEye Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Proofpoint Inc with a $136 average price target.

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Based on Proofpoint Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $34.3 million. In comparison, last year the company had a GAAP net loss of $25.94 million.

Based on the recent corporate insider activity of 80 insiders, corporate insider sentiment is negative on the stock.

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Proofpoint, Inc. is a security and compliance company, which engages in the provision of cloud-based solutions. Its platform comprises of an integrated suite of threat, information, and brand protection solutions including: email protection, advanced threat protection, email authentication, data loss prevention, response orchestration and automation, digital risk, web browser isolation, email encryption, archiving, eDiscovery, supervision, and secure communication. The company was founded by Eric Hahn in June 2002 and is headquartered in Sunnyvale, CA.