Boston, MA 04/09/2014 (wallstreetpr) – Shares of security software vendor FireEye Inc (NASDAQ:FEYE) jumped Tuesday following positive rating of the stock by analysts at Wedbush. The analysts upgraded the stock to outperform from neutral and issued price target of $62 per share. The new price target shows potential upside of 23 percent from the previous closing price.
The last one month saw shares of FireEye falling 43 percent, reflecting value correction among technology companies. The shares were also impacted by the expiration of the lockup period after the IPO.
Increasing cyber threat
The increase in cyber threat is expected to result in high demand for cyber security solutions. Thus, FireEye Inc (NASDAQ:FEYE) is expected to witness higher sales.
The company reported fourth quarter revenue of $57.3 million, reflecting 81 percent increase from one year ago quarter. The operating loss in the quarter came in at $61.4 million.
Analysts at Wedbush expect the company generate first quarter revenue of $73 million and fiscal 2014 revenue is expected to come in at $411 million. Previously the analysts expected the company to report fourth quarter and fiscal 2014 revenue of $71.5 million and $406 million respectively.
Controversial report
But even analysts expect FireEye Inc (NASDAQ:FEYE) to perform better in the current quarter and year, the company is fighting a security vendor assessment report which rated it lower against rivals in breach detection technology.
NSS Labs last week published security vendor assessment report, analyzing the ability to detect security breaches. The reported ended up placing FireEye behind Trend Micro, SourceFire and other providers. But FireEye claimed that the methodology used by NSS was flawed. For FireEye Inc (NASDAQ:FEYE), the NSS assessment of its security features cannot be correct as they used its outdated software. Furthermore, the company claimed that it declined to participate in the NSS testing after detecting the flaw in the methodology.
Nonetheless, FireEye’s results according to the NSS assessment were not totally bad. The issue however is that the results suggest FireEye is in for credible competition in the breach detection market.
