Shares of KEYW and FireEye Soar Following SunTrust's Note - $80+ take-out price for KEYW
n a report published Friday, SunTrust Robinson Humphrey analyst Tobey Sommer commented on FireEye's (NASDAQ: FEYE [FREE Stock Trend Analysis]) acquisition of the cyber security firm Mandiant for $1 billion.
SunTrust commented on the acquisition, noting “This is evidence that bringing security firms together is important in broadening capabilities and that high valuations are supported in the market.” FireEye will use cash and stock to fund the deal at 10x revenue. The analyst furthered his analysis examining The KEYW Holding Corporation (NASDAQ: KEYW). Suntrust wrote, “cybersecurity firm KEYW is expected to generate $8.30 in sales per share - based on 2013 revenue. If acquired at a similar multiple to this transaction, this would imply an $80+ take-out price for KEYW.”
Mandiant is a privately-held company known for computer forensics investigation, security research and finding detailed information about hackers following a breach. The company has investigated who was responsible for hacking on behalf of numerous large corporations and has added software capabilities to boost revenue and margins.
KEYW Holding closed at $13.68 on Thursday and is currently trading up 9.65%. shares of FireEye closed at $41.13 and is currently up a whopping 34.18%.