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FireEye (FEYE) - Get FireEye, Inc. Report shares were up 6.8% in trading Monday to $17.19 after the stock was upgraded to overweight from neutral at JPMorgan Chase with a $20 price target. 

The company reported 10% billings growth in the December quarter, which the firm expects will accelerate throughout 2019 with new packaging and enterprise on demand from the cybersecurity firm pushing growth during the year, according to analyst Sterling Auty. 

"FireEye has re-established itself as a leading cybersecurity company, but by combining the market leading incident response service with an expanding product portfolio," Auty wrote. "We believe the transition is complete and now FEYE is in position to see billings growth in the high single digits and the potential to over deliver and see double digit growth."

The firm said billings are a better reflection of the company's demand than revenue as the firm expects revenue growth to see the impact of lower appliance sales from the past few years. 

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The firm's $20 price target is based on a 4.75 time multiple over the company's 2020 revenue estimate of $959 million. 

"This growth is combined with solid expense control that is creating a tremendous amount of operating leverage. This set up is for a stock that is now trading under 4x EV/Sales a compelling risk reward and why we are upgrading to Overweight," Auty said. 

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