FireEye Inc.'s (NASDAQ: FEYE) stock continued to surge after it raised its third-quarter sales guidance Tuesday afternoon. But at least one sell-side analyst is staying on the sidelines, saying the growth potential is low.
The California-based cybersecurity company now sees third-quarter sales at or above the high end of its previous guidance range of $217 million to $221 million, pumping investors’ interest. The company kept its billings guidance in the prior range.
Mizuho’s Gregg Moskowitz remained Neutral on FireEye, with a $16 price target.
FireEye’s preliminary third-quarter results were better than expected and long-term guidance was “generally healthy,” Moskowitz wrote in a note.
And the stock is priced right.
But, “while FEYE's deep discount to the group remains somewhat intriguing to us, we continue to see a relatively low organic growth profile, and execution has been inconsistent over the past few years,” Moskowitz wrote.
FireEye's stock was up 3.7% to $14.36 at publication time Wednesday.
16 Stocks Moving in Wednesday's Pre-Market Session
Analysts: FireEye Shows 'Encouraging Signs Of Growth,' But 'More Pain Ahead'
Latest Ratings for FEYE
|Oct 2019||Initiates Coverage On||Hold|
|Aug 2019||Initiates Coverage On||Buy|
View More Analyst Ratings for FEYE
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