FireEye (FEYE) PT Cut to $17.50 at Nomura, Buy Maintained; Risk/Reward is Positive

Nomura Securities analyst Frederick Grieb lowered his price target on FireEye, Inc (NASDAQ: FEYE) to $17.50 (from $22.50) but retained a Buy rating following a solid quarter.

Grieb commented, "FireEye currently trades at just 4.6x EV / LTM Subscription Revenue. 4.0x EV / LTM Subscription revenues is typically a floor valuation for security and enterprise software vendors, and at this level, the company is essentially trading at the standalone value of its recurring maintenance stream. Based on its aftermarket price of $12.68, we believe FireEye currently has downside to ~$11.20 (4.0x EV / LTM Subscription revenues) or about 12% downside, while in an upside scenario, we see $17.50, or 3.3x CY’17 Total Revenues (38% upside). We like the current risk/reward and remain Buy rated."

For an analyst ratings summary and ratings history on FireEye, Inc click here. For more ratings news on FireEye, Inc click here.

Shares of FireEye, Inc closed at $11.01 yesterday.

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