FireEye Expected To Break Even In 4-5 Years, Progress Continues

In a report published Thursday, Morgan Stanley analyst Keith Weiss reiterated an Equal-Weight rating and $37.00 price target on FireEye Inc FEYE. In the report, Morgan Stanley noted, " After a year where shifting product mix and uneven results left investors with many questions on the FireEye business model, 4Q14 may not have answered all the questions, but we think it certainly reinforced FireEye's position as a potent force in the red hot cybersecurity market." The report continued, "The vendor of choice for incident response in every high profile cyber attack, penetration into the Fortune 2000 expanding from 15% to 25%, more $1M deals in a single quarter than the past two years combined, and pro-forma product growth accelerating to 75% YoY,all highlight the increasing demand for security and FireEye's ability to capture that demand. At the same time, we began to see a slowdown in the rapid investment FireEye has made in distribution and product development, as the company looks to reap gains (and higher productivity) from those investments next year." FireEye closed on Wednesday at $35.69.