FBN Securities Starts Symantec (SYMC) at Outperform
- Top 10 News for 10/24 - 10/28: AT&T (T), Time Warner Make it Official; Margins Hamper Apple's Q4; Mergers Aplenty
- Wall St. falls as FBI to review more Clinton emails
- Clinton email problem resurfaces as FBI announces review
- ExxonMobil (XOM) Tops Q3 EPS by 5c; CapEx Light of Views
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
FBN Securities initiated coverage on Symantec (NASDAQ: SYMC) with an Outperform rating and a price target of $29. Analyst Shebly Seyrafi sees benefits from its Blue Coat acquisition.
"The company had traditionally been focused on the consumer security market where its leading anti-virus (AV) solutions (Norton) have, along with those from Intel’s McAfee segment, MSFT (Microsoft Essentials), Trend Micro, and AVG, been the key AV solutions in the market. The consumer security market is mature (we project this market to decline at around 2% per year) but is a very high margin (56% operating margin last quarter) segment which SYMC can use to make investments in the faster-growing but (currently) low-margin enterprise security market (6% operating margin last quarter). Note that if, as we believe, SYMC produces a free cash flow (FCF) of over $1B in F2018, then its FCF yield at the current share price is over 6.5%, which is quite attractive," said Seyrafi.
The analyst added, "We believe that through the combination of cost reduction actions, increased scale, and integration of Blue Coat Systems, SYMC can increase its enterprise security operating margin from 6% last quarter to 26% by the end of F2018."
Shares of Symantec closed at $24.94 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Oppenheimer Raises Price Target on Wex, Inc. (WEX) Following 3Q Report
- Alphabet (GOOGL) (GOOG) PT Raised to $925 at Needham & Company
- Leerink Partners Downgrades McKesson (MCK) to Market Perform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, New Coverage
Related EntitiesMcAfee Intel Merger, Definitive Agreement, Shebly Seyrafi
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!