This beat-up security stock will rally nearly 70% on turnaround, analyst says

FireEye information analysts work at the company's office in Milpitas, California.
Beck Diefenbach | Reuters

Investors should buy FireEye shares because its network security business will return to growth later this year, according to Bank of America Merrill Lynch, which raised its rating on the company to buy from neutral.

"We believe the stock offers a unique buying opportunity, with significant upside potential over the next two years, given a combination of ultra-low expectations, low valuation, a plethora of new solutions and recent sales leadership refresh," analyst Tal Liani wrote in a note to clients Monday. "We think the Street underappreciates the quality of FireEye's management, its recovery strategy and most important, the quality of its technology and solutions that could drive growth in 2H2017."

The company's shares are down more than 40 percent in the past year through Friday as financial results came in below Wall Street expectations.

FireEye traded up 8 percent mid-morning Monday after the analyst's upgrade.