FEYE rose 8% in the week ended April 13
FireEye shares have generated returns of 56% in the last 12 months and 6.2% in the last month after rising 19% in 2017. The stock is now trading 55% above its 52-week low of $18.71 and 2% below its 52-week high of $19.08.
Morgan Stanley raises FireEye’s price target to $21
On March 28, 2018, Morgan Stanley (MS) released a research note in which it upgraded its 12-month price target on FireEye to $21 from $18. The stock has risen over 11% since Morgan Stanley updated its price target.
According to a report from Investorplace.com, President Donald Trump’s incoming national security adviser, John Bolton, “is a big believer in launching ‘disproportionate’ cyber attacks against countries that have hit America and American companies with cyber attacks.”
In event that the United States escalates to a cyberwar, there will likely be growing demand from governments and companies to strengthen their cyber defenses. This demand is expected to benefit pure play cybersecurity companies such as FireEye, Palo Alto Networks (PANW), Check Point Software Technologies (CHKP), and Symantec (SYMC).
Market research company Gartner expects enterprises to continue to spend more on data security. This year alone, cybersecurity spending by companies is projected to hit $96.3 billion, a rise of 8.0% over 2017. Enterprise security spending was $89.1 billion in 2017 and $82.2 billion in 2016.