FEYE – Market expectations are for Uniform ROA expansion, but management may have concerns about demand, Mandiant Advantage, and competition

• FireEye, Inc. (FEYE:USA) currently trades at a significant premium to UAFRS-based (Uniform) assets, with a 5.5x Uniform P/B. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about Managed Defense demand, the Mandiant Advantage platform’s capabilities, and competition in the intelligence business.
  
• Specifically, management may have concerns about the sustainability of rising demand for Managed Defense and multimillion dollar Managed Validation transactions. In addition, they may lack confidence in their ability to expand the capabilities of the Mandiant Advantage platform and help organizations mature their security posture, and they may be overstating their focus on consumer protection following the products business divestiture. Finally, management may have concerns about the progress of the Automated Defense rollout and they may be downplaying concerns about competition in the intelligence business.