Microsoft (NASDAQ: MSFT) has backed out from talks to acquire cybersecurity firm Mandiant, Inc. (NASDAQ: MNDT), as the tech giant thinks that the security businesses of both the companies would not fit together, Bloomberg reported citing people with knowledge of the matter.
Meanwhile, according to a report published by The Information, Alphabet’s (NASDAQ: GOOGL) Google has opened talks to snap up Mandiant.
The news pushed MNDT stock up 16.1% on Monday before dropping 2.7% in the extended trading session to end the day at $21.89.
About Mandiant
Virginia-based Mandiant provides intelligence-based cybersecurity solutions that allow organizations to prepare for, prevent, respond to and remediate cyberattacks. Its offerings include Enterprise Security, Managed Security, Threat Intelligence, and Industry Solutions.
Analysts’ Take
Last month, Catharine Trebnick from Colliers Securities maintained a Buy rating on the stock with a price target of $22 (2.2% downside potential).
Additionally, Barclays (NYSE: BCS) analyst Saket Kalia reiterated a Sell rating on Mandiant and increased the price target to $20 from $17 (11.1% downside potential).
Based on 1 Buy, 2 Holds and 1 Sell, Mandiant has a Hold consensus rating. The average MNDT price target of $19.50 implies 13.3% downside potential from current levels. Shares have gained 30.2% year-to-date.
Hedge Fund Trading Activity
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Mandiant is currently Very Positive, as the cumulative change in holdings across all five hedge funds that were active in the last quarter was an increase of 1.2 million shares.
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