NEW YORK (TheStreet) -- Shares of FireEye Inc (FEYE) were slipping, down 2.29% to $52.42 in late morning trading Monday, after analysts at UBS lowered its rating on the cyber security company earlier today.
The firm downgraded FireEye to "neutral" from "buy" citing the 70% year-to-date rise in shares.
UBS warned in a note that the largest companies in the space will face stiff competition and higher expectations.
Still, analysts at the firm expect spending on protection against online threats to be "sustainably resilient."
Milpitas, Calif.-based FireEye created a purpose-built, virtual machine-based security platform that provides real-time, dynamic threat protection across the primary threat platforms including web, email, and files in various stages of an attack life cycle.
The company provides malware protection systems as well as automated threat prevention solutions.
Insight from TheStreet's Research Team:
Robert Lang commented on FireEye in a recent post on RealMoneyPro.com. Here is what Lang had to say about the stock:
Cybersecurity has become big business. Every week, it seems we are hearing about some breach of important data files by some hacker threatening to steal information that could cost someone many millions of dollars. In fact, last week we heard of not one but two such intrusions into Federal employee files. If it's easy for the government to be victimized then really anyone or anything is vulnerable.
FireEye (FEYE) and others in this group like CyberArk (CYBR) and Palo Alto Networks (PANW) are all the rage this year, as they are the perceived victors of investment by companies in their own protection. As it relates to the charts, the market believes it as well. FireEye is well off its all-time highs, but is at yearly highs in this very sloppy and choppy market, which is quite the feat. This is a stock that has potential for growth but is just in the proving stages.
The chart and technicals exploded recently, and just this week, the stock closed very strong in a very weak tape. The Relative Strength is impressive, so much so that it has really moved into some higher ground. The stock has been riding the higher Bollinger Band upward and turnover has been solid. We like this stock to continue higher but could see a pullback to $50, which might be a better entry point. Watch more analysis on FEYE in my video.
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