Deutsche Bank Upgrades Symantec (SYMC) to Buy; Compelling Risk/Reward Opportunity

July 6, 2009 8:12 AM EDT

Deutsche Bank upgrades Symantec (Nasdaq: SYMC) from Hold to Buy. Price target increased from $17 to $19.

Deutsche analyst says, "The stock has under-performed significantly over the last several months. At 9x EV/FCF, the stock is near the bottom of its historical trading range. In conjunction with early signs of executional improvement, we see a compelling risk-reward opportunity into the back half of the year. We feel comfortable that F1Q performance will match expectations, although this upgrade is not based on F1Q performance...After over a year of mixed execution, we see signs that Symantec could be turning the corner. Feedback from the channel improved for the second consecutive quarter as customers embrace several improved products. Combined with an improved IT security outlook, consensus F1Q expectations below +1% q/q historical seasonality and currency tailwinds, we think F1Q results should be in line. In addition, we see opportunities for greater margin expansion as our F2010 operating margin of 31% is above the street at 29%."

To see more analyst ratings on SYMC Click Here.

Symantec Corporation (Symantec) provides security, storage and systems management solutions to help businesses and consumers secure and manage their information.

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