FireEye upgraded at Buy at BofA Merrill with chance for upside surprise

|By:, SA News Editor

FireEye (NASDAQ:FEYE) +6.2% premarket after BofA Merrill Lynch upgrades shares to Buy from Neutral with an $18 price target, raised from $13.50, saying Wall Street largely ignores the company's guidance for growth resumption in H2 2017, which offers an opportunity for a positive surprise.

BofA believes FEYE’s core value proposition is centered around having some of the most advanced threat intelligence that lends its value to three areas of innovation: dealing with network threats, strong position in endpoint protection, and the value of analytics and threat management.

The firm sees three key drivers for growth, serving as potential catalysts for the stock - 6K appliances that are due a refresh, representing $200M of market opportunity; new products (cloud MVX, Smart grid, Helix, enhancements to FireEye-as-a-Service and the next gen endpoints); improvements to its go-to-market, adding new sales leadership, removing sales capacity constraints, and reducing the channel partner conflict.