I'm no fan of overheated tech momentum stories, but even with Imperva's (IMPV)
shares up almost 60% over the past year, I'm not convinced Imperva is
overheated. Certainly these are early days for web application firewalls
and database-oriented security solutions, but Imperva has already
established itself as the only company to address web apps, databases,
and file activity monitoring and with appliance, software, and cloud
delivery models.
Looking at what companies like Fortinet (FTNT) and Check Point (CHKP)
achieved in their early years and the opportunity in securing both
structured and unstructured data (as opposed to networks), I'm
optimistic that a long-term revenue growth forecast around 20% is not
ridiculous. That doesn't make Imperva a notably cheap stock today, but
it does make it worth a spot on a watch list given the freak-outs that
can drive significant pullbacks in security and enterprise software
stocks.
Please continue here:
Imperva's Valuation May Not Be So Ridiculous
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