What Analysts Are Recommending for FireEye Stock
Of the 29 analyst recommendations for FireEye stock, there is only one “sell” recommendation. More than 65.0% are recommending a “hold” for the stock.
On May 19, 2017, Cisco Systems (CSCO) continued to be the largest global player by market capitalization in the cybersecurity space.
FireEye stock has risen nearly 31.0% in the last two months. Its fiscal 1Q17 results and its guidance exceeded analysts’ expectations.
On May 19, 2017, FireEye was trading 7.0% above its 20-day moving average of $14 and 15.0% above its 50-day moving average of $13.
According to Profit Confidential, FireEye tops the list of cybersecurity stocks to watch in 2017.
Because of FireEye’s exposure in Europe and Asia-Pacific, it could be the prime beneficiary of increased cybersecurity spending.
Analysts are primarily (61.0%) recommending a “buy” for Cisco stock as of May 19, 2017.
Currently, Cisco’s forward EV-to-EBITDA multiple is 7.2x. Symantec’s (SYMC) is ~9.6x, and Palo Alto Networks’ (PANW) is ~24.8x.
In late April 2017, Credit Suisse raised its rating for Cisco stock to “outperform” from “underperform,” which implies a double upgrade.
In the wake of the WannaCry attack, Cisco stock received an upgrade to “overweight” from “equal weight” by Morgan Stanley.
The surge in Cisco stock came to a halt after the company posted its 3Q17 earnings. The stock fell nearly 8.0%, making it the biggest fall since November 2013.
The recent WannaCry ransomware attack suggests higher spending on cybersecurity by corporations as well as governments. Cisco would benefit the most.
Shaul Eyal of Oppenheimer & Co. said the WannaCry attack could be “a wake-up call for many organizations and countries delaying a review of their cybersecurity hygiene.”
According to Avast, Russia, Ukraine, India (EPI), and Taiwan were hit the worst among the 150 countries that were affected by WannaCry ransomware.
On May 14, 2017, Microsoft highlighted in a blog the link between WannaCry and an exploit stolen from the NSA (National Security Agency) earlier this year.
The PureFunds ISE Cyber Security ETF (HACK) rose 3.3% on May 15, 2017, due to the WannaCry ransomware attack.
Over the past 15 days, WannaCry ransomware has been in the news. Some investors were rejoicing—specifically, investors in the cybersecurity sector.
As of May 19, 2017, Symantec (SYMC) was trading at a forward EV-to-EBITDA multiple of ~9.3x, which is lower than Oracle’s (ORCL) ~10.6x.
Cisco reported its fiscal 3Q17 (ended April 29) results on May 17. The report was largely devoid of major surprises, though it did pressure the stock.
Nvidia did the unexpected in its fiscal 1Q18 (calendar 1Q17), with revenue and profits that expanded from one year ago, handily topping expectations.