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Jefferies Downgrades Sourcefire (FIRE) to Hold On More Level Risk/Reward

January 9, 2012 7:35 AM EST
FIRE Hot Sheet
Rating Summary:
    6 Buy, 7 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Jefferies downgraded Sourcefire (NASDAQ: FIRE) from Buy to Hold with a price target of $30, saying the current price presents a more level risk-reward.

The firm comments, "Commercial growth acceleration and material margin expansion are already factored into Street models which leaves less room for potential upside, in our view. Our rating change is not about the December quarter, which we believe will be strong based on healthy commercial sales and initial success with the Next-Generation Firewall product. Our change is about valuation and CY12 estimates—we do not think CY12 estimates will see upward revisions in the near term which may be required for the next move. As such, we will look for a more favorable entry point or greater conviction in upward estimate revisions to return to a more constructive view on the stock."

For an analyst ratings summary and ratings history on Sourcefire click here. For more ratings news on Sourcefire click here.

Shares of Sourcefire closed at $30.26 yesterday, with a 52 week range of $22.61-$35.90.


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