Why Shares of FireEye Just Jumped


Nov. 20 2020, Updated 1:05 p.m. ET

Shares rose 8.2% on March 20

Shares of cybersecurity (HACK) firm FireEye (FEYE) rose ~8% on March 20, 2017, to close at $11.61, after Bank of America (BAC) analyst Tal Liani upgraded the stock from “neutral” to “buy” and increased the stock’s price target from $13.5 to $18.

FireEye’s revenue growth has fallen to 12.5% YoY (year-over-year) in 3Q16, but Liani believes that, when compared to the company’s YoY growth of 100% in 3Q14 and 45% in 3Q15, its expertise in network threat intelligence will drive future revenues.

FireEye was once a market favorite in the cybersecurity space, but shares have fallen drastically—by 42% in 2016 and 37% in the trailing-12-month period due to stagnating revenues.

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FireEye’s new offerings in network security

Driven by increasing competition in cybersecurity, FireEye has launched two new offerings: MVX Smart Grid and Cloud MVX in fiscal 3Q16. Its private cloud offering, MVX Smart Grid, employs MVX Engine and Smart Nodes to examine Internet traffic to detect and terminate external threats.

According to FireEye, “Cloud MVX provides a FireEye public cloud deployment of the MVX engine, allowing organizations to shift threat detection to the cloud, making the most intelligent security available anywhere, at any time, on a subscription basis.”

Top players in the APT space

FireEye, Forcepoint, Blue Coat (now owned by Symantec), Intel Security (INTC), Symantec (SYMC), and BAE Systems were all featured among the top players in the APT (advanced persistent threat) space, according to research by the Radicati Group.

According to the Radicati Group’s research, the global revenue for APT protection offerings could grow from $2.6 billion in 2016 to ~$7.3 billion by 2020, as the above chart shows. The rise in cyberattacks, the proliferation of IoT (Internet of Things), and the increasing requirement to deploy advanced security solutions should drive growth in the APT space going forward.


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