Proofpoint (PFPT) PT Raised to $80 at Summit Research

Summit Research analyst Srini Nandury reiterated a Buy rating and boosted its price target on Proofpoint (NASDAQ: PFPT) to $80.00 (from $70.00) following a solid beat and raise quarter.

Nandury commented, "Proofpoint reported a solid quarter with revenues and billings coming ahead of guidance and consensus driven by solid demand for its advanced threat protection products, upsell/cross sell of additional products (half of the revenue/billings growth), high competitive win rates and high renewal rates (90%+). More importantly, the company also raised both revenue and billings guidance for F3Q and the full year. Revenue increased 37% Y/Y to $63.5mln and billings grew even faster, up 51% Y/Y to $75.5mln, both revenue and billings ahead of consensus estimates and guidance. The company continues to see strong growth with large enterprise wins, strong traction in Target Attack Protection (up 100% Y/Y) and international expansion (up 29% Y/Y). Given the strength of its product portfolio and channel relationships, we are confident that Proofpoint will continue to gain share against incumbent vendors in email archiving (HP, Symantec), messaging security (Microsoft, McAfee, Symantec and Cisco) and specialized threat markets. We reiterate our BUY rating and raise our P.T. to $80 (up from $70) based on 9.5x on EV/C2016 sales of $324 million. We believe PFPT deserves a higher multiple given that it is the industry leader in securing email (most mission critical of all apps), and while executing well, the stock remains valued at a discount to high growth names such as PANW and SPLK (All trading north of 9.8x on EV/C2016 sales)."

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

Shares of Proofpoint closed at $67.54 yesterday.

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