FireEye Inc (NASDAQ:FEYE)’s stock has formed its bottom it seems as the company is back in investors’ radar after the recent security breaches and leaks. The stock has had wild swings this year, moving higher from $37 levels and reached $97 levels in early April, only to collapse back to sub $30 levels by the end of May. Recently UBS changed its rating on the cybersecurity company’s stock to ‘Buy’ from ‘Neutral’ and since the announcement the stock has been flying. Brent Thill from UBS was on CNBC recently to discuss why his firm changed its rating on FireEye Inc (NASDAQ:FEYE).
“[…] We think the cyber landscape is very robust, we think FireEye is a leader. Clearly the revenue growth will decelerate, given the acquisition of Mandiant, which helped the revenue growth this year. So, they will have an unfair comp next year, but when you look at what’s going on, no one wants to be the CEO of Target again and when you look at FireEye’s perspective on cyber landscape, they are an absolute leader, there is no question […],” Thill said.
Thill revealed that he has had talks with numerous customers who use FireEye Inc (NASDAQ:FEYE)’s products and they told him that products from other cybersecurity companies don’t work at the level at which FireEye Inc (NASDAQ:FEYE)’s products work. According to Thill, FireEye Inc (NASDAQ:FEYE)’s stock didn’t deserved to have gone to $90 levels earlier this year, he attributed that rise to investors’ folly of considering that Mandiant was a cybersecurity technology company instead of a cybersecurity consulting company. Thill feels that the price at which company trades today is far more lucrative from an investment point of view.
As of June 30,2 2014, Adam Usdan’s Trellus Management Company owns over 400,000 shares in FireEye Inc (NASDAQ:FEYE), making it one of the largest shareholders in the company.