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at Benzinga.com (Dec 17, 2014)
at CNBC.com (Nov 21, 2014)
at Fox Business (Nov 18, 2014)
at MarketWatch.com (Oct 3, 2014)
at CNBC.com (Jan 17, 2014)
at CNBC.com (May 31, 2013)
at Fox Business (Mar 12, 2013)
at MarketWatch.com (Apr 20, 2012)
at MarketWatch.com (Apr 20, 2012)
- PFPT has reached lofty valuations due to an intersecting bubble in cloud stocks and internet security stocks.
- The company has never been profitable and doesn't expect to be in the near future.
- All of PFPT's gains are due to multiple expansions.
- Even on a relative basis, PFPT is over-valued.
- Government agencies, businesses and individuals have done little to protect themselves from cyber attacks.
- We are experiencing a huge increase in rate and severity of cyber attacks.
- Proofpoint is well positioned to capitalize on the growing need and demand for cyber security.
Proofpoint Is Utilizing Its Customer Base And Partnerships
- Proofpoint has grown rapidly over the last few years. The company's rapid growth has continued into 2014 with revenue increasing 42.4% y/y.
- Proofpoint's growth has been driven by their top-quality security and archiving solutions. These solutions have produced a loyal and large customer base.
- Management has been able to leverage their customer base to cross-sell their new products. Additionally, the company's new products are helping to attract new customers.
- With the increasing demands of regulations, companies need to properly record and retain emails and other messages which Proofpoint is well suited to do.
- Microsoft's Office 365 is helping Proofpoint increase their customer base through their partnership. Proofpoint is well positioned to outperform in two rapidly growing markets.
Proofpoint: Fundamentals Suggest Still More Downside
- Correction in the broader market may be over, but weak fundamentals may drive the next leg down for the stock.
- Decent headline growth numbers, but momentum restricted to a few products with limited operating leverage and worsening balance sheet.
- Stock may correct 40-50% as estimates start to reflect weak fundamentals and valuation multiples compress.
Thu, Dec. 18, 11:13 AM
- FireEye (FEYE +4.9%), recently hired by Sony to probe its massive hacking incident, is rallying strongly on an up day for equities after Sony cancelled The Interview's release in response to the hack and subsequent threats on movie theater chains.
- Other security tech names are also outperforming: PANW +3.2%. KEYW +3.9%. FTNT +2.6%. PFPT +3.2%. Imperva (IMPV +2.6%) is adding to the Wednesday gains it saw following a Deutsche upgrade.
Fri, Dec. 12, 9:54 AM
- A blog post from computer security firm F-Secure may send a chill through the C-suites of major corporations across the globe.
- F-Secure calls the Sony Pictures (NYSE:SNE) hacking incident the worst ever seen by a company, but that's not even the scary part.
- The take from F-Secure is that it's sophisticated extortionists behind the incident - not ticked off North Korea sympathizers.
- The public execution of Sony Pictures could just be a warning aimed at future targets, theorizes F-Secure.
- The FBI has issued a flash alert which warns that other company might already have the malware in their systems.
- Related: Senate passes cybersecurity bill
- Cybersecurity plays: FEYE, CYBR, PFPT, QLYS, IMPV, PANW.
Wed, Nov. 5, 3:18 PM
- Threat-prevention hardware/software/services upstart FireEye is down 14.9% after missing Q3 revenue estimates and offering slightly soft Q4 revenue guidance. The company's billings figures were better.
- Security tech peers Qualys (QLYS -2.5%), Proofpoint (PFPT -2.5%), CyberArk (CYBR -6.7%), and KEYW Holding (KEYW -2.2%) have joined the list of names selling off in sympathy. Palo Alto Networks and Barracuda Networks are also lower.
Thu, Oct. 23, 4:15 PM
Thu, Oct. 23, 12:03 PM
- Check Point (CHKP +4.2%) beat Q3 estimates and offered healthy Q4 guidance: Revenue of $395M-$430M and EPS of $0.99-$1.09 vs. a consensus of $410.3M and $1.03.
- Fortinet (FTNT -0.1%) posted a Q3 beat, reported strong billings growth, and issued above-consensus Q4 revenue guidance. EPS guidance was light due to aggressive spending.
- Several security tech peers are outperforming on a day the Nasdaq is up 1.7%. PANW +4.4%. FEYE +4.5%. PFPT +4.9%. QLYS +2.7%. The numbers follow downbeat guidance from IBM, SAP, and VMware, and arguably highlight security's growing share of IT spend.
- Oppenheimer is reiterating an Outperform and $30 target on Fortinet, and notes the company's new billings guidance implies 26% 2014 growth at the midpoint (up from 22%). It thinks the UTM hardware vendor's performance is being driven by strong high-end appliance sales, product refreshes, and the fruits of major sales/marketing investments.
Wed, Oct. 22, 5:35 PM
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Tue, Aug. 5, 12:45 PM
- Cautious overall on small caps (NYSEARCA:IWM) due to valuation concerns, Goldman's David Kostin nevertheless has a list of 25 names with market caps less than $4B which could offer at least 25% upside to his firm's price target over the next year.
- The list skews towards Consumer Discretionary - Lumber Lidquidators (LL +2.1%), Office Depot (ODP -2.4%), RetailMeNot (SALE -26.1%), Ryland (RYL +0.5%), Steven Madden (SHOO +2.7%), Vitamin Shoppe (VSI -8.2%) - and Tech - Universal Display (OLED -0.2%), Qlik Technologies (QLIK -1.6%), Proofpoint (PFPT -1.5%), Polycom (PLCM +0.2%), Nimble Storage (NMBL -0.3%), Marketo (MKTO +1.1%), Infinera (INFN +1.1%), Cornerstone Ondemand (CSOD -0.9%), GT Advanced Technology (GTAT +5.7%).
- Also included are Health Care names: Agios Pharmaceuticals (AGIO -1.1%), NPS Pharma (NPSP +0.7%), NuVasive (NUVA -1.8%), Synageva (GEVA -1.6%); Consumer Staples: Darling Ingredients (DAR -0.8%); Materials: Axiall (AXLL -1%), Boise Cascade (BCC -0.9%); Industrials: Granite Construction (GVA +0.7%), Financials: MGIC Investment (MTG +1.2%), Radian (RDN +1.7%).
Thu, Jul. 24, 4:22 PM
Thu, Jul. 24, 1:57 PM
- Fortinet (FTNT +6.7%) beat Q2 estimates with the help of 33% Y/Y billings growth (exceeded rev. growth of 25%) and a 95% Y/Y increase in $500K+ deals.
- The company guided in its CC slides (.pdf) for Q3 revenue of $182M-$185M and EPS of $0.11 vs. a consensus of $177.3M and $0.13. Full-year guidance is for revenue of $735M-$740M and EPS of $0.47-$0.48 vs. a consensus of $714M and $0.50. Billings are expected to grow ~22% to $835M-$840M.
- On its CC (transcript), the UTM hardware leader suggested its light EPS guidance is due to a heavy investment pace, including aggressive sales hiring. It also mentioned Americas sales were up 40% Y/Y, fueled by a 73% increase for U.S. enterprise.
- Meanwhile, Vasco Data (VDSI +16.9%) trounced Q2 estimates and hiked its guidance for 2014 revenue from traditional businesses to $175M-$180M from $168M-$172M. The company notes adoption of new productions leveraging its Cronto visual authentication tech (acquired last year) has been strong.
- FireEye (FEYE +3%), Palo Alto Networks (PANW +2.8%), Proofpoint (PFPT +3.6%), and Check Point (CHKP +1.7%) are trading higher. Proofpoint reports after the bell; Check Point provided a Q2 beat and healthy top-line guidance yesterday.
- On the other hand, Barracuda (CUDA -5.9%) is selling off. JPMorgan attributes the decline to Fortinet's CC remarks about rapidly growing sales to mid-sized businesses - Barracuda depends heavily on them - with the help of new resellers. The firm argues the concerns are overblown, particularly since Fortinet is more focused on larger mid-sized businesses.
Wed, Jul. 23, 5:35 PM
- ABAX, ACTG, ALGN, ALTR, AMZN, ATRC, AWAY, BAS, BCOV, BCR, BIDU, BJRI, BLDR, CB, CBI, CERN, CLS, COLM, CTCT, CYN, DECK, DGII, DLB, DTLK, ECHO, ELY, EPR, FET, FICO, FII, FLEX, FSL, GIMO, HBHC, IM, INFA, KLAC, LEG, LOGM, LSCC, MITK, MKTO, MLNX, MSCC, MTD, MTSN, MXIM, N, NR, NTGR, OLN, P, PACB, PEB, PFG, PFPT, QLGC, QLIK, RFMD, RGA, RGC, RSG, RVBD, SBAC, SBUX, SIVB, SPNC, SRCL, SWFT, SWI, SYA, TPX, TSRO, UHS, V, VR, VRSN, WOOF, WRE, WRI
Wed, Jul. 16, 9:38 AM| 1 Comment
Mon, Jun. 2, 9:41 AM
- Xilinx (XLNX -1.1%) has been cut to Neutral by Goldman.
- STMicroelectronics (STM -1.5%) has been cut to Sell by Citi. HSBC downgraded shares on May 22.
- Microsemi (MSCC +3.1%) has been upgraded to Buy by Goldman.
- Proofpoint (PFPT +1.5%) has been upgraded to Buy by Sterne Agee. Shares joined IT security peers in selling off on Friday.
- Universal Electronics (UEIC -8.4%) has been cut to Neutral by B. Riley.
Fri, May. 30, 1:49 PM
- High-beta enterprise tech names are particularly well-represented in a momentum stock selloff as Splunk, Nimble Storage, Violin Memory, and (especially) Infoblox fall post-earnings.
- Analytics/data visualization software vendors Tableau (DATA -6.5%) and Qlik (QLIK -4.1%), often hyped (like Splunk) as big data plays, are among the decliners. As is flash storage vendor Fusion-io (FIO -5.4%), which competes with Violin and (to a lesser extent) Nimble. But they're far from the only ones.
- Security decliners: FEYE -6.5%. CUDA -8.4%. IMPV -7.4%. PFPT -5.7%. VDSI -4%. QLYS -4.5%.
- Cloud software decliners: WDAY -4.1%. JIVE -4.3%. MKTO -7.4%. NOW -4.9%. TNGO -5.1%. CSLT -6.9%. TXTR -6.7%. RALY -11.6%.
Tue, May. 20, 2:04 PM
- Proofpoint (PFPT +1.3%) is buying NetCitadel, a developer of incident-response software, for $24M in cash. The deal isn't expected to have a "material impact" on 2014 revenue of profits.
- Proofpoint asserts NetCitadel's products strengthen its existing threat-protection offerings, in part by "unifying, correlating and synthesizing security alerts from Proofpoint and other leading security vendors such as HP ArcSight, Palo Alto Networks and FireEye," and thereby significantly cutting response times.
- The deal is the latest in a flurry of M&A activity in the threat-prevention/incident-response space, as security vendors try to cater to growing corporate interest in cybersecurity solutions that mesh on-premise hardware/software with cloud-based services.
- FireEye bought leading endpoint security/incident-response firm Mandiant in January, and Palo Alto responded by acquiring cybersecurity startup Cyvera.
Wed, May. 7, 2:24 PM
- FireEye (FEYE -26.2%) has crashed to new post-IPO lows after offering light EPS guidance to go with a revenue beat, and has sparked a sharp selloff in IT security stocks on (another) down day for momentum plays. PANW -10.2%. IMPV -7.1%. PFPT -6.8%. QLYS -8.7%. FTNT -3.3%.
- Citi is worried about a lack of "opacity" for FireEye's top-line numbers following the Mandiant deal. "Management noted 'bookings' for both FireEye and Mandiant grew >50% Y/Y. With FY13 growth of near 100% this leaves an outstanding question of whether or not business decelerated meaningfully on an organic basis."
- Others are more positive. Wells Fargo (Outperform) is still confident about its forecast for 50%+ revenue growth over the next 3 years, and the "disruptive nature" of FireEye's business model (integrated threat-prevention hardware/software/services). Goldman (Neutral, but with a $58 PT) thinks organic growth is good enough, and expects a flurry of new products to provide a boost.
- FBN (Outperform) is still bullish long-term, but also notes product revenue was below consensus, and is on edge over a May 21 lockup expiration that will lead 68% of shares to become eligible for sale.
Thu, May. 1, 12:48 PM
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