NEW YORK (TheStreet) --Shares of FireEye Inc. (FEYE) are lower by 1.57% to $50.80 in pre-market trading on Friday morning, after the cyber security solutions provider was downgraded to "equal-weight" from "overweight" at Barclays today.
The firm said it reduced its rating on FireEye based on a valuation call. Barclays set a $56 price target on FireEye stock.
"FireEye's networked installed base and services business create a virtuous circle of threat intelligence that gives their tools high efficacy and makes the company a unique asset," Barclays said in an analyst note.
"Moreover, as management appears to be focusing on profitability and cash flow, we set our near-term EPS and cash flow above guidance. However, as cash flow improves we think valuation will shift to EV/FC- we look toward FY19 as management gave an illustrative model for that year," the note continued.
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 several 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 deteriorating net income and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: