Investor interest in FireEye (FEYE) - Get Report heated up Tuesday after an industry analyst upgraded his rating on the cybersecurity company, citing increased demand for its services amid rising tensions between the United States and Iran.
FireEye's stock price jumped 4.11% to $18.31 a share after a SunTrust Robinson Humphrey analyst boosted his rating on the stock to buy from hold.
SunTrust Robinson Humphrey's Joel Fishbein also hiked his price target on FireEye to $22 a share, up from $15 previously, Bloomberg reported, noting the average price target for the stock firm among analysts is $23 a share.
Rising tensions in Iran and Iraq "have put the spotlight on cybersecurity, and we believe it will lead to increased government and private-sector spending," Fishbein wrote.
Increased operating performance and the potential for a sale of the cybersecurity company are other factors that could help boost FireEye's stock price, the SunTrust Robinson Humphrey analyst noted.
FireEye is not alone in attracting a surge in investor interest, with shares of other cybersecurity firms like CrowdStrike (CRWD) - Get Report on the rise in the wake of last-week's U.S. drone strike that killed a top Iranian general.
Officials in the U.S. have warned of potential cyber attacks by Iran, with particular concern over the potential to disrupt industrial control infrastructure.
In October, FireEye reported quarterly earnings that beat analysts' estimates by 3%, fueled in part by a 28% jump in services revenue.
"We are leading modern cyber defense with solutions that are intelligence-led," said Kevin Mandia, FireEye's CEO, in a press statement after the company's last earnings report.