FireEye (FEYE) Chatter Picks Up Following Well-Attended Cyber Defense Summit

FireEye (NASDAQ: FEYE) popped higher mid-day Thursday on speculation of a new, undisclosed contract. Gains, however, were quickly erased as nothing materialized. Chatter could be increasing on the name as it just finished its 2015 Cyber Defense Summit, which some analysts viewed as bullish.

Nomura analyst Frederick Greib attended the conference, along with 2,000 other attendees, and discussed two key takeaways from the conference: 1) a new rollout in FireEye’s endpoint security suite and 2) a strategic partnership with Visa.

HX Endpoint 3.0

-expected to be generally available in November
-extends FireEye’s Threat Intelligence to the cloud working alongside AV software to fill gaps in threat detection and prevention
-will continue to be offered on a perpetual plus maintenance renewal model, unless offered as part of a FaaS subscription.
-pricing has not been announced but a premium over previous solutions is expected
-“We believe the new HX version will be seen as a positive for the company as customers increasingly look to next-gen endpoint solutions to supplement their AV software.”

Detail on Visa Partnership

-FireEye announced a partnership with Visa along with the launch of Visa Threat Intelligence (VTI), powered by FireEye
- providing threat intel through Visa’s spend pattern analysis and distilling mission critical alerts to payment parties
-“With the growing magnitude of payment fraud, we view a suite of payment-specific solutions and a partnership with a Visa as a strategic step for the company.

Maintaining Buy rating and $54 PT

-company’s sales cycle is shortening, as FireEye has progressed from missionary selling and proof of value
- when the company reaches break even in cash flow from operations in FY’15, shares should appeal to a wider range of investors, in additional demand

Shares of FireEye last traded up 1.7% to $29.24.

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