Growing tech stocks rarely look cheap by conventional metrics, and Sourcefire (FIRE)
has been an all-too-rare beat-and-raise grower even through this
slowdown in enterprise IT spending. Relative to the opportunities and
valuations at other security players like Cisco (CSCO), Check Point (CHKP), Fortinet (FTNT), and Palo Alto (PANW),
though, it's not so clear that Sourcefire is a major bargain at today's
prices. Although the potential addressable market would indeed likely
support strong revenue growth and the company's technology could make it
an acquisition target, I'm not sure Sourcefire should have this sort of
relative valuation.
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Sourcefire's Risk-Reward Seems A Little Out Of Whack
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