In the past couple of weeks, three brokerage firms have initiated coverage on this stock with the following ratings: Dougherty & Company (Buy); Wedbush (Outperform); and Wunderlich (Buy).
FireEye (FEYE)
from The National Investor
Few sectors have been as hot this year as have cyber security stocks. And FireEye (FEYE) has been leading the pack—nearly double now from when we picked off these shares at the bottom last Fall—and for good reason.
FEYE is my one specific pick here (I have also recommended a modest position to the ETF “HACK,” to cover the sector more generally) because FireEye is widely recognized as having the best and most cutting-edge product offerings.
Though the company is still nowhere near posting net earnings, its stature and revenue continue to grow. On the former, I found it fascinating recently to read where lawyers are now advocating that their business clients hire FireEye to cover themselves against any possible future claim that they didn’t do all they could to guard their information!
Though due to my concerns about overall market valuation, I have now gone to a “HOLD” on FireEye, but I remain optimistic. And not the least of the reasons is that I expect a larger I.T. company sooner rather than later will make a bid for the company. For a Cisco Systems, for example, FireEye’s product/service platform would seemingly round out what would then become THE strongest I.T. and security portfolio anywhere.
Chris Temple, The National Investor, www.nationalinvestor.com, 847-986-6320, June 9, 2015