Wunderlich On FireEye: The 'Strong Will Survive,' It's Still A Buy

In a report published Tuesday, Wunderlich analyst Rob Breza maintained a Buy rating and $62 price target on FireEye Inc (NASDAQ: FEYE).

Following a recent meeting with the management and product specialists, the analyst believes that "the company is well positioned and significantly differentiated to benefit from the strong security tailwind."

The analyst believes that the company "challenges" the firewall and detection/AV market to pay attention to advanced persistent threats that "pivot away" from perimeter and appliance solutions.

"In our opinion, FEYE's "Detect, Prevent, Analyze and Respond" platform remains a top priority for enterprise focused companies. Based on our recent meeting with FEYE, its TAP cloud analytics combines real-time touch points with an unmatched forensic solution and services," Breza stated.

Quarter-end channel checks also suggest that the company, along with several of its peers, is tracking ahead of its targets for the quarter. The analyst expects this trend to continue, with the ramp of "Requests for Quotes" and pipeline development. Security spending is also expected to remain strong into 2H and 2016, with several projects just beginning.

According to the Wunderlich report, "Based on the positive spending environment and demand for the company's expanding platform, we would not be surprised to see the company top consensus estimates and improve the bottom line as overall bookings should create a positive backdrop going into the second half of the year and 2016."