.jpg "Proofpoint Inc (NASDAQ: PFPT)")
In a report issued on October 26, Kenneth Talanian from Evercore ISI maintained a Buy rating on Proofpoint Inc (NASDAQ: PFPT), with a price target of $105. The company’s shares closed on Friday at $83.55, close to its 52-week low of $75.92.
Talanian observed:
“We have revised our F19 to F21 estimates to factor in a lower revenue/billings growth environment but continue to see strong FCF growth of likely 30%+ for F19 and F20 (when adjusting for F20 HQ capex). We are lowering our price target from $135 to $105 based on ~22x EV/CY20 FCF (adjusted for the HQ capex). We view this as a reasonable starting point and see upside if the company outperforms. SMID-caps are seeing pressure so a near-term re-rating may prove difficult but this is an opportunity to acquire shares of a high quality security company at a discount. Maintain Outperform. Solid results. Proofpoint reported billings of $221.4M, above our estimate of $219.0M and consensus of $219.7M. Revenue of $184.2M was also above both our $181.0M estimate and consensus of $181.4M. Non-GAAP operating margin of 12.3% was above our estimate of 8.3% consensus of 8.8%.”
According to TipRanks.com, Talanian is a 5-star analyst with an average return of 15.2% and a 66.7% success rate. Talanian covers the Technology sector, focusing on stocks such as Check Point, FireEye Inc, and Autodesk.
Proofpoint Inc has an analyst consensus of Strong Buy, with a price target consensus of $117.80, representing a 41.0% upside. In a report issued on October 18, Robert W. Baird also initiated coverage with a Buy rating on the stock with a $130 price target.
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Based on Proofpoint Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $36.06 million. In comparison, last year the company had a GAAP net loss of $21.96 million.
Based on the recent corporate insider activity of 78 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.
