Piper Jaffray analyst Andrew Nowinski upgraded FireEye (FEYE) to Overweight from Neutral and raised his price target for the shares to $20 from $17. The cybersecurity company closed Friday up 28c to $15.98.

A recent round of channel checks showed a "significant improvement" in demand trends for the company, Nowinski tells investors in a research note. The analyst's contacts noted that FireEye's new pricing bundles are having a positive impact on overall demand trends, which he believes is sustainable and will drive positive operating income and free cash flow starting in Q3.

Nowinski believes FireEye's current valuation represents an attractive entry point.