FireEye Inc (NASDAQ:FEYE), Palo Alto Networks Inc (NYSE:PANW), and Splunk Inc (ANSDAQ:SPLK) were named as Ed Maguire’s picks in the cybersecurity industry in a recent interview with CNBC.
The CLSA senior analyst and managing director explained to the Fast Money team why he has given Splunk Inc (NASDAQ:SPLK) a Buy rating. Furthermore, he explained why he is eyeing FireEye Inc (NASDAQ:FEYE) and Palo Alto Networks Inc (NYSE:PANW).
Asked what could be the best plays in the cybercrime space, he said that he and his team like Splunk Inc (NASDAQ:SPLK). Furthermore, he mentioned that FireEye Inc (NASDAQ:FEYE) is good at managing and combating unknown threats while Palo Alto Networks Inc (NYSE:PANW) is for network security. He said that these three are “terrific companies”.
The Fast Money team noted, however, that these stocks have had roller coaster rides recently. Asked what his price targets are for FireEye Inc (NASDAQ:FEYE), Palo Alto Networks Inc (NYSE:PANW), and Splunk Inc (ANSDAQ:SPLK), he noted that he only covers Splunk. His price target for the company is $80. The stock closed at $43.85 per share yesterday. He added that FireEye and Palo Alto Networks are both trading calls and that he will not mention a price target for these stocks.
Nonetheless, he explained why he likes these companies. According to the analyst, cybersecurity is fundamentally a human-created problem. Saying that as this problem space continues to balloon, companies will have to deal with it. He added that companies who are able to manage this area well are going to build good businesses.
Watch the video below where Maguire also discussed possible target companies.
Shareholders in FireEye Inc (NASDAQ:FEYE) includes Daniel Benton’s Andor Capital Management which had 450,000 shares in the company as of the end of the first quarter. That stake was valued at about $27.71 million. Another shareholder is Noam Gottesman’s Glg Partners with a stake that had 420,146 by the end of March.
Criterion Capital managed by Christopher Lord reported 4.36 million shares in Palo Alto Networks Inc (NYSE:PANW) by the end of March. Another major investor is Maverick Capital managed by Lee Ainslie which had, at the end of the first quarter, about 4.28 million shares in the company.
As for Splunk Inc (NASDAQ:SPLK), Columbus Circle Investors managed by Donald Chiboucis reported a 1.87 million-share stake in the company for the first quarter of 2014. Noam Gottesman’s Glg Partners also reported 1.35 million shares in the cybersecurity company by the end of March.