FireEye (FEYE) stock got upgraded to overweight from neutral by JPMorgan Chase analysts. The analysts set a $20 price target on the cyber-security company’s shares.
Analyst Sterling Auty cited FireEye’s “market leading incident response service with an expanding product portfolio" as factors behind the rating upgrade. FireEye generated a +10% growth in billings in the December quarter, and is expected to have a higher growth prospect through 2019.
"We believe the transition is complete and now FEYE is in position to see billings growth in the high single digits and the potential to over deliver and see double digit growth", mentioned Auty. Additionally, Auty emphasized that FireEye’s strong expense control as a contributor to operating leverage should be a tailwind for the company whose stock is currently trading under 4x EV/Sales.
FireEye shares climbed +3.4% in pre-market trading Monday.