Analysts Chasing Up Targets on FireEye, Shopify and Paycom

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Over two-thirds of the S&P 500 have reported earnings so far this season, and needless to say it has been a strong showing thus far. Apple has helped to push the Dow above the 22,000 mark, following its incredible earnings report and the analyst outpouring after the fact. However, analysts are not entirely focusing on Apple. There are a few companies that might have been overlooked.

247 Wall St. has picked out a few of the best-performing stocks that reported on Tuesday and we’ve included what analysts are saying about each of these firms.

FireEye Inc. (NASDAQ: FEYE) released its most recent quarterly results late on Tuesday, and the firm said that it had a net loss of $0.04 per share and $185.5 million in revenue. Although a loss might look bad on the surface, these results beat out Thomson Reuters consensus estimates of a net loss of $0.12 per share and $176.43 million in revenue.

Merrill Lynch was one of the most positive firms so far on FireEye with a reiterated Buy rating and $18 price objective. Its investment rationale now states:

FireEye’s stock offers a unique buying opportunity given a combination of ultra-low expectations, low valuation, plethora of new solutions and recent sales leadership refresh. We believe the Street under appreciates the quality of FireEye’s management, its recovery strategy and the quality of its technology and solutions that could drive growth in 2H17. The stock trades at an substantial discount to peers and any sign of growth and profitability could drive a share price recovery, in our view.

Wedbush has a Neutral rating but raised is price target to $15 from $13. The brokerage firm increased its revenue and billings estimates on the quarterly earnings beat and sees progress toward stabilization. Still, Wedbush feels that the company’s initiative to sell Helix into the mid-market, and with new channel pricing, is probably too nascent to move the needle on revenue or profitability in the next several quarters.

A few other analysts weighed in on FireEye as well:

  • Barclays raised its price target to $16 from $14.
  • BMO has a Market Perform rating and raised its target from $15 to $17.
  • Evercore ISI raised its price target to $20 from $16.
  • Morgan Stanley raised its price target to $13 from $12.

Shares of FireEye were last seen down 1% at $14.54, with a consensus analyst price target of $15.16 and a 52-week range of $10.35 to $17.70.

Shopify Inc. (NYSE: SHOP) reported its earnings before the markets opened on Tuesday. Although the stock was down in the wake of these results, firms seem to think the dialogue might be changing for the stock. The e-commerce company said that it had a net loss of $0.01 per share and $151.7 million in revenue. This compares with consensus estimates that called for a net loss of $0.07 per share and revenue of $143.64 million.

Merrill Lynch has an Underperform rating, based on valuations that it feels are too high. Still, the firm raised its price objective on Shopify to $88 from $84 based on its strong results. The firm also noted that Shopify is likely to continue consolidating the vast small business market of 5.2 million in the United States alone with market leadership and a number of defensible competitive advantages.

A few other analysts hiked their targets on Shopify as well:

  • Barclays raised its price target to $90 from $70.
  • CIBC raised its price target from $105 to $120.
  • Credit Suisse raised its price target to $110 from $95.
  • Eight Capital has a Buy rating and raised its target from $105 to $120.
  • Morgan Stanley raised its price target to $109 from $87.
  • Raymond James raised its price target to $110 from $93.
  • RBC raised its price target to $99 from $78.
  • Wedbush raised its price target from $100 to $115.

Shares of Shopify were trading down about 5% at $99.02 on Wednesday, with a consensus price target of $93.88 and a 52-week range of $33.20 to $105.79.

Paycom Software Inc. (NYSE: PAYC) released its earnings after the markets closed on Tuesday. The firm said that it had $0.26 in EPS and $98.2 million in revenue. The consensus forecast had called for EPS of $0.20 and $96.1 million.

Analysts took this opportunity to raise their targets on Paycom:

  • Canaccord Genuity raised its price target from $80 to $85.
  • Credit Suisse raised its price target to $78 from $70.
  • Jefferies has a Buy rating and raised its target to $83 from $73.
  • Oppenheimer raised its price target to $75 from $65.
  • RBC raised its price target from $67 to $74.
  • Stifel raised its price target to $80 from $67.

Shares of Paycom were last seen down about 7% at $66.26, with a consensus price target of $70.17 and a 52-week range of $39.15 to $73.61.