Shares of FireEye Inc
The brokerage attributed the uptick in shares to the high short interest and negative
“We think this reduction stems from sales capacity losses in the wake of its 3Q restructuring and from an attempt to de-risk the goals,” analyst Steve Koenig wrote in a note.
For FY17, management expects product revenue to continue declining at the current rate of 35 percent year-over-year. That said, the company expects narrower loss of ($1.14)–($1.16) (previously -$1.28 to -$1.32).
Koenig anticipates fourth-quarter total revenue of $193 million and non-GAAP EPS of ($0.15). For FY16, the analyst expects total revenue of $722 million and non-GAAP EPS estimate at ($1.12).
The analyst's Neutral rating is based on the company’s dependence on the declining NX product, and potential successful launch of new virtualized and hybrid/cloud MVX offerings.
The company is also trying to create lower-priced add-on offerings for existing customers and a much cheaper cloud/hybrid capability for new customers.
“However, we think FEYE is fairly late in entering the market with a low-cost, software-based capability,” Koenig added.
At the time of writing, shares of FireEye climbed 13.35 percent to $12.48. The analyst raised his target price modestly to $14 from $13 on higher cash flows.
|Sep 2016||Deutsche Bank||Assumes||Hold|
|Aug 2016||Imperial Capital||Downgrades||Outperform||In-Line|
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