Morgan Stanley, a financial services firm, deserves a massive ‘thank you’ from cybersecurity company FireEye Inc (NASDAQ:$FEYE). Why? Because after Morgan Stanley turned bullish on FireEye for the first time, shares of the California-based company increased 6.3% in active morning trade on Thursday, September 7.
Even though a 6.3% increase in morning trade might not seem like a lot, anyone interested in application software shares should be jumping with joy right now. The New York City-based firm cited stabilization in recent results as well as an upbeat outlook for FireEye’s new Helix offering. Impressively, volume surpassed 5.5 million shares within an hour after the market opened, which was already more than the full-day average of 5.2 million shares.
Analyst Melissa Franchi played a defining role in today’s surge, as she boosted her rating at ‘overweight’ after sitting at ‘equal weight’ since coverage was inflated in September of 2014. “Early data points from recent results and our customer survey suggests a Helix adoption potential significantly higher than consensus assumes,” Franchi wrote in a letter to her clients. “At the same time, our sum of the parts analysis suggests investors are pricing in continued declines in the FireEye subscription base- stabilization in recent results, positive spending indications from our survey work and a building renewal base all suggest otherwise.”
So far in 2017, FireEye stock has surged 32%.
Featured Image: twitter
