Goldman Turns Bullish on $FEYE; Stock Surges

Cyber security-fags will be delighted by this call — helping to squeeze some life into the flaccid shares of $FEYE this morning. Out of all the cyber security stocks, Fireeye is easily the worst, having bore the brunt of an unbelievable sell off from its IPO highs just a few years ago.

But an analyst who goes by the name of Gabriela Borges from Goldman Sachs thinks all of that is about to change. She upgraded the stock and increased her target by 50% from $10 to $15.

“Street 2017 product revenue and billings estimates have been materially reset, with mix shift to recurring revenue occurring faster than we expected, and increased detail on the pricing model for Helix. We believe the introduction of Helix, an advanced analytics platform, addresses many of FireEye’s previous challenges by reducing total cost of ownership (TCO) by 33-50%, and streamlining the company’s go-to-market under its new head of sales. As the new model comes into focus, we expect more consistent execution and FCF generation. Since being added to Americas Sell List on 11/22/16, FEYE is -12% vs. S&P 500 +7%.”

Shares are soaring in the pre-market and should provide succor for other security plays like $FTNT, $CYBR and $PANW.