Demand for security software continues to grow, as corporations and governments around the world look to protect their precious data. From the looks of things, demand is growing and the second-quarter numbers could be outstanding.
A new research report from the enterprise software analysts at FBR points out that it appears from their recent checks in the field that closure rates on larger deals may have improved nicely during the June quarter. This could be a harbinger of good things for the whole security group, and it speaks to the firewall refresh that the FBR team believes is underway in the hot-hot areas of security.
The FBR team likes three market leaders, all of which are rated Outperform. They also spotlight three additional stocks that could be takeover candidates.
Check Point Software Technologies Ltd. (NASDAQ: CHKP) remains one of the top tech stocks to buy on Wall Street for a security presence, and the FBR analysts, like many on Wall Street, think Internet and data security is crucial. The company continues down the path of its Software Blade strategy and is arguably more candid about its installed base advantage where it will look to continue to consolidate product features within its platform and provide customers a superior cost of ownership. FBR has a $74 price target on the stock. The Thomson/First Call consensus target is $72.15. Checkpoint closed Tuesday at $67.29 a share.
FireEye Inc. (NASDAQ: FEYE) was absolutely blasted in the withering spring tech sell-off for many reasons, including a rich valuation, continued deal making and insider lock-ups expiring. The stock finally bottomed in mid-May and has fought its way back smartly. FireEye recently announced the new release of FireEye Email Threat Prevention Cloud that adds the traditional email security features of anti-spam and antivirus protection to its advanced threat detection capabilities. The FBR price target is $70, and the consensus is at $47.06. FireEye closed Tuesday at $41.04.
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