The firm said it initiated coverage on the network security company as it believes FireEye will be facing an increase in competition over the coming quarters.
"We believe the company is well-positioned to benefit from rapid growth in the cyber security market: however, we are concerned that increasing competition mat put pressure on the company's hyper-growth rate," JMP said.
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"The cyber-threat landscape has evolved to include more sophisticated, well-funded, and maliciously motivated actors who use a new generation of attack known as advanced persistent threats," the firm added.
"The APT market has become increasingly competitive with products from established companies gaining significant traction and an increasing number of well-funded start-ups also targeting the space," JMP noted.
Shares of FireEye are higher by 1.71% to $30.89 in pre-market trading today.
Separately, TheStreet Ratings team rates FIREEYE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate FIREEYE INC (FEYE) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and deteriorating net income."