FireEye's (FEYE) Expertise On Demand Could Add Incremental Revenue, Reit Equalweight At Barclays
Barclays anlayst, Saket Kalia, reiterated his Equalweight rating and $20 PT on shares of FireEye, Inc (NASDAQ: FEYE) after Billings was better than expected from early contribution of Expertise on Demand. The analyst highlighted 3 key points in FY19 Guidance:
1) Billings guidance of 7.5% at the midpoint and revenue growth of 6.5% reflect product amortization rolling off.
2) Large deal activity in 1Q and 2Q18 is not expected to repeat in 1H19 making street models more back-end loaded. However, he believes growth will accelerate in 2H19 these comps are lapped.
3) Expertise-on-demand is an interesting offering that is off to a good start but it could cause variability in the model since utilization based revenue recognition will be used for at least part of the revenue.
Shares of FireEye, Inc closed at $16.55 yesterday.