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AURIGA Initiates Coveragea on McAfee (MFE) with a Sell

March 26, 2009 7:46 AM EDT
MFE Hot Sheet
Rating Summary:
    0 Buy, 13 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
AURIGA initiates coveragea on McAfee (NYSE: MFE) with a Sell. Price target $28.

AURIGA analyst says, "For much of the past few years, MFE has traded at a healthy discount to its software peers. However, the pendulum has swung in the other direction and, in our view, investors may be overly reliant on MFE as a “safe” stock in a tumultuous environment. We believe Street revenue and EPS estimates for MFE in 2009 could prove to be too high, particularly in the second half. As such, we believe MFE is at risk of seeing some multiple contraction and mean reversion over the next 12 months."

McAfee, Inc.is a dedicated security technology company that secures systems and networks from known and unknown threats.

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