FireEye Inc (NASDAQ: FEYE)
FireEye is having an incredibly strong day in the market today. At the opening bell, the stock was already trading on dramatic gains, leading to an alert from our partners at Trade Ideas. Since then, the stock hasn’t seen much movement, but has held onto strong gains. At the moment (1:29), FEYE is trading at $12.37 per share after a gain of $0.88 per share or 7.66% thus far today.
Goldman Sachs Upgrades FEYE
As mentioned above, Goldman Sachs has made the decision to upgrade FireEye, leading to big gains in the value of the stock. The firm upgraded the stock from a Sell rating to a Buy rating, also increasing its price target on the stock. The price target has been increased from $10.00 to $15.00. In a statement, Goldman Sachs analyst, Gabriela Borges had the following to offer…
“Street 2017 product revenue and billings estimates have been materially reset, with mix shift to recurring revenue occurring faster than we expected, and increased detail on the pricing model for Helix. We believe the introduction of Helix, an advanced analytics platform, addresses many of FireEye’s previous challenges by reducing total cost of ownership (TCO) by 33-50%, and streaming the company’s go-to-market under its new head of sales. As the new model comes into focus, we expect more consistent execution and FCF generation. Since being added to Americas Sell List on 11/22/16, FEYE is -12% vs. S&P 500 =7%.”
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on FEYE. In particular, we’re interested in watching as the company launches Helix to see just how beneficial the new product is to the books. Nonetheless, we’ll continue to follow the story and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!
[Image Courtesy of Max Pixel]