Shares of FireEye plunged 13.1% on Wednesday after the company reported that it was hit by a cyberattack and hackers stole some sensitive “Red Team” tools. Notably, the Red Team tools are used by the cybersecurity company’s officials to test customer’s security.
FireEye (FEYE) called the attack “highly sophisticated cyber threat” and suspects that the act is done by state-sponsored hackers of foreign nationals. However, the company hasn’t been able to identify the suspected country.
In a blog posted on its website on Dec. 8, FireEye’s CEO Kevin Mandia wrote, “We are actively investigating in coordination with the Federal Bureau of Investigation and other key partners, including Microsoft. Their initial analysis supports our conclusion that this was the work of a highly sophisticated state-sponsored attacker utilizing novel techniques.” (See FEYE stock analysis on TipRanks)
According to FireEye, "the attacker primarily sought information related to certain government customers."
Citigroup analyst Walter Pritchard fears that the data breach could damage its reputation and may pose a risk of customers not buying cybersecurity solutions from the company. Pritchard pointed out that McAfee and RSA Security had suffered similar threats in the past, which impacted their businesses in the quarter they occurred. The analyst reiterated his Hold rating on the stock.
Overall, the Street is sidelined on the stock. The Hold analyst consensus is based on 2 Holds, 2 Buys and 1 Sell. The average price target stands at $17.50 and implies upside potential of about 29.7% to current levels. Shares have dropped by 18.4% year-to-date.
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Shares of Asana surged almost 16% in Wednesday’s extended trading session after the software company reported better-than-expected 3Q results. The team-based work management applications provider’s 3Q revenues surged 55% to $58.9 million that surpassed the analysts’ expectations of $54.1 million.
Asana’s (ASAN) 3Q non-GAAP loss per share of $0.34 was smaller than Street estimates of a loss of $0.36. However, the loss widened from $0.30 per share in the year-ago period.
"We reported a very strong quarter, with total revenue growth of 55 percent year over year and growth of revenue from customers who spend $5,000 or more on an annualized basis of over 80 percent year over year," said Asana’s CEO Dustin Moskovitz.
Moskovitz added, "With the acceleration of digital transformation, organizations are reimagining every aspect of business operations to ensure that people can stay engaged, aligned and effective, no matter where they are. Asana’s Work Graph provides the power, flexibility and control that organizations need to orchestrate work at scale."
Buoyed by strong quarterly performance, Asana raised its fiscal 2021 revenues guidance range to $220.6-$221.6 million from $210-$213 million. Moreover, the company now projects to report a non-GAAP loss per share in the range of $1.21-$1.24, down from the previous guidance of $1.30-$1.33. (See ASAN stock analysis on TipRanks)
For 4Q, Asana forecasts revenues of between $62 million and $63 million, while non-GAAP loss per share is projected at $0.25-$0.27.
On Oct. 26, Oppenheimer analyst Ittai Kidron initiated coverage on the stock with a Buy rating and price target of $30 (5.9% upside potential). In his report, Kidron wrote, “We believe Asana is poised to benefit as enterprises look for ways to improve workflow and worker productivity, and could see material revenue upside ahead.”
Overall, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 6 Buys, 4 Holds and 1 Sell. The average price target stands at $27.80 and implies downside potential of about 1.9% to current levels. Shares have declined by about 1.6% since their listing on the NYSE on Sep. 30.
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Shares of Mesa Air Group rose 3.3% in Wednesday’s extended trading after the commercial aviation company surprised the Street with a 4Q profit fueled by better-than-expected sales.
Mesa Air (MESA) delivered 4Q earnings of $0.32 per share, crushing the Street’s estimates for a loss of $0.10. Meanwhile, earnings declined by 11.1% year-over-year. The company’s revenues of $108.04 million topped the consensus estimates of $92.95 million, and declined 42.5% year-over-year, primarily due to the reduced flying amid COVID-19.
The company’s CEO Jonathan Ornstein said, “Despite a significant reduction in flying, we were able to find creative ways to reduce costs, operate profitably, generate positive cash-flow, and protect our employees from involuntary furloughs.” He added, “We also entered the cargo market through our new agreement with DHL - diversifying our revenue sources and creating new opportunities for our company. I can’t thank our hardworking employees enough, their dedication and professionalism truly went above and beyond this year.” (See MESA stock analysis on TipRanks)
On Nov. 30, Raymond James analyst Savanthi Syth said that she sees “some upside potential” in the stock.
Syth reiterated a Buy rating and raised the price target to $10 (38.3% upside potential) from $6.50. Shares have declined by about 19.1% year-to-date.
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Amphenol Corp. announced the acquisition of MTS Systems Corp. in a deal valued at $1.7 billion, including debt. As part of the transaction, the provider of high-tech interconnect, antenna and sensor solutions will pay $58.50 per share to MTS.
Amphenol (APH) expects to finance the deal through cash on hand and a combination of borrowings under its existing credit and commercial paper facilities. The deal is expected to close in mid-2021.
The transaction is expected to be accretive to Amphenol’s EPS in the first year of closing, with a contribution of about $0.10 and $0.06 from MTS’s (MTSC) Sensors and Test & Simulation segments, respectively.
Amphenol’s CEO R. Adam Norwitt said, “This acquisition is consistent with our strategy of continuing to expand our range of sensor and sensor-based products across a wide array of industries to further capitalize on the long-term growth potential of the electronics revolution.” (See APH stock analysis on TipRanks)
On Dec. 7, Jefferies analyst David Kelley raised the stock’s price target to $157 (17.5% upside potential) from $138 and maintained a Buy rating. The analyst said, “APH's share inflection reflects connector recovery, solid mix of sustained WFH [working from home] & ramping cyclical exposure, strong execution, & content expansion. Despite looming difficult '21 WFH comps, we believe APH has more room to run & see upside to 4Q20/1Q21 ests. on the heels of continued cyclical sales upside & better profit conversion.” He added that “Acquisition step-up could also prove a further catalyst.”
Meanwhile, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 4 Buys and 4 Holds. The average price target stands at $128.14 and implies downside potential of about 4.1% to current levels. Shares have gained 23.5% year-to-date.
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