Wall Street analysts’ views on FireEye stock
So far in this series, we’ve looked at market expectations from FireEye’s (FEYE) 3Q16 results. We also discussed the factors that have hammered FireEye’s stock.
In the cybersecurity space, FireEye, Symantec (SYMC), Palo Alto Networks (PANW), Barracuda (CUDA), and Fortinet (FTNT) are prominent players. Cisco Systems (CSCO) dominates the security appliance market. Now let’s take a look at select market-centric views and metrics for FireEye.
Of the 31 recommendations for FireEye’s stock, there is only one “sell” recommendation. As we can see in the chart above, close to 71% of analysts recommended a “hold” for FireEye’s stock. The remainder were “buy” recommendations.
Analysts’ recommendations for FireEye changed in favor of a “hold” in the last couple of months. Earlier in this series, we highlighted the factors that give investors some assurance that the company is moving in the right direction of growth, as well as the areas that it should focus on.
FireEye’s price performance
FireEye’s stock price movement over the past month has been largely negative. On October 26, 2016, FEYE stock has lost ~18% of its value. In the last year, the stock has lost close to 56% of its value.
Analysts’ target prices
Analysts’ consensus target price for FireEye was $17.88 per share on October 26, 2016. On that day, the median target price was $16.00, and the closing price was $11.90.
First Analysis Securities downgraded FireEye’s stock to “underweight” from “equalweight” and reduced its target price to $11.00 from $15.00.
Investors who wish to gain exposure to the cybersecurity space can consider investing in the PureFunds ISE Cyber Security ETF (HACK). HACK has a portfolio of 32 stocks, and it invests ~5% of its holdings in FireEye.