Analyst Note
| Mark Cash |We are maintaining our $17 fair value estimate for no-moat Mandiant after its third-quarter results came in below our expectations for revenue growth and adjusted earnings, and its outlook for revenue growth in the fourth quarter fell short of what we anticipated. Nonetheless, we believe that Mandiant has a brighter future after shedding the FireEye products division in October and that the transition to subscriptions is a solid move in the long term. Without FireEye products, Mandiant is now a neutral player that is looking to become a key part of customers’ cybersecurity defense infrastructure by stepping in when threats emerge and by constantly verifying the attack perimeter. Although we believe Mandiant will be a key organization called on to remediate leading cyberthreats, our underlying concern is the ability to resolve issues, then lock customers into its ecosystem with products as a neutral player.