MKM Partners Upgrades Symantec (SYMC) to Buy, Leadership Change a Positive Catalyst

July 25, 2012 2:19 PM EDT Send to a Friend
Get Alerts SYMC Hot Sheet
Price: $23.51 -0.72%

Rating Summary:
    9 Buy, 25 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 29 | Down: 28 | New: 24
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MKM Partners upgraded Symantec (NASDAQ: SYMC) from Neutral to Buy with a price target of $20.00 (from $17.00).

The firm said the CEO change is a major positive development. "In our view, Symantec was in deep need of a change in leadership and strategy," commented MKM analyst Israel Hernandez. "Over the past three years, Symantec has been unable to accelerate organic growth despite an aggressive focus on M&A, resulting in significant underperformance and a sagging price target relative to peers."

In comments to investors, Mr. Bennett indicated that all possible options will be evaluated.

"Among the possible outcomes that we believe should be on the table: more shareholder-friendly capital allocation strategy (i.e., fewer acquisitions, more buyback and establishment of a dividend), asset sales, more disciplined approach on margins and profitability and/or sale of the company," Hernandez said.

For an analyst ratings summary and ratings history on Symantec click here. For more ratings news on Symantec click here.

Shares of Symantec are up 13.5 percent to $14.95 mid-day Wednesday.


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