The target price for FireEye Inc (NASDAQ:FEYE) set by Summit Research is still low, Fox Business News’ Charles Payne discussed in a recent segment explaining how to profit with the stock.
The comment comes after Summit Research initiated coverage on FireEye Inc (NASDAQ:FEYE) on Monday with its analyst Richard Williams setting a price target of $45 with a Buy rating.
According to Williams, the company “protects multiple threat vectors such as e-mail, file sharing and websites” and that its technology is “unequaled in successfully finding malware.” Furthermore, the analyst said that the company can process significantly more data than its rivals. The rating from Summit Research comes after Nomura and Barclays praised FireEye Inc (NASDAQ:FEYE) last month for its strengths. Ed Maguire, CLSA senior analyst and managing director, also recently included the company in his top picks for cybersecurity.
Meanwhile, according to Payne, the FireEye Inc (NASDAQ:FEYE) stock has exploded and then imploded recently. Noting Summit Research’s rating, he said that the firm is calling the company “best-in-class” for advanced threat analysis. However, Payne maintains that the price target is still low, even given that the highest the stock has been is $97. He explained:
“I think that target happens to be very low. The short end on this thing is still relatively high. Remember that this company is going to grow at least 55% over the next five years. The 15% short starts to get squeezed once it closes above $40. I think from there you can have a quick move up to $50.”
Furthermore, Payne stressed that the current reality in the sector is that internet security is a hotspot. Watch the video below.
Shareholders in FireEye Inc (NASDAQ:FEYE) includes Trellus Management Company managed by Adam Usdan. The hedge fund reported a 440,488-share position in the company by the end of the first quarter. That stake was valued at about $21.7 million. Another investor is Tudor Investment Corp managed by Paul Tudor Jones. The firm reported 251,838 shares in the cybersecurity firm as of the end of March.