Borges downgraded the rating on the company from Neutral to Sell, while lowering the price target from $15 to $11.
The analyst believes there could be 21 percent downside risk to the stock valuation.
Although a large part of the risk facing the company already appears priced in, Borges believes “the Street continues to underestimate the challenges associated with transitioning from high-end hardware-based security products to a broader subscription/services portfolio in an environment where competition is high.”
FireEye is in the midst of taking meaningful steps to position products and
However, Borges expects the company’s fundamentals to remain pressured in 2017, due to changes in customer buying patterns, and believes that “FireEye’s strategy to move into the mid-market will be difficult to execute.”
“FireEye is in the process of releasing next-gen products, sales cycles typically take 6–9 months, and it may be difficult to intercept customer budgeting cycles mid-year,” the analyst pointed out.
At last check, FireEye was
|Nov 2016||Goldman Sachs||Downgrades||Neutral||Sell|
|Sep 2016||Deutsche Bank||Assumes||Hold|
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