Proofpoint Is The One To Own,' According To This Analyst

Summit Research issued a company note on Proofpoint Inc (NASDAQ: PFPT) after the company reported revenues and billings that exceeded consensus estimates. Analysts at Summit Research reiterated a Buy and issued a $80 price target.

Analysts Srini Nandury and Jonathan Kees wrote, "Results were driven by solid demand for its advanced threat protection products, upsell/cross sell of additional products (half of the revenue/billings growth), high competitive win/renewal rates... Given the strength of its product portfolio and channel relationships, we are confident that Proofpoint will continue to gain share against incumbent vendors in email archiving, messaging security and specialized threat markets."

Analysts highlighted two key takeaways on why they believe Proofpoint is "the ONE to OWN."

1. Top-line growth

Summit noted that revenues and billings both increased (37 percent year-over-year) and have the potential to continue to accelerate due to strong customer relationships and the potential of increased penetration in existing markets.

2. Growing importance of email security

Analysts noted that securing email is currently one of the most important concerns for Chief Security Officers and many experts consider Proofpoint to be the best email protection technology in the industry. Summit wrote that presently, only 49 percent of the Fortune 100 use Proofpoint protection, which gives the company an excellent opportunity to grow its install base.