McAfee Corp. (MCFE) PT Raised to $27 at Morgan Stanley After Survey

Morgan Stanley analyst Hamza Fodderwala raised the price target on McAfee Corp. (NASDAQ: MCFE) to $27.00 (from $25.00) after conducting a survey that showed overall adoption of consumer security products declined slightly in 2020 vs. 2015. Despite this, the consumers willingness to pay for personal protection software has risen over the same period.

The analyst reiterated the Overweight rating, interpreted these data, stating "our survey shows durable LT demand for consumer security, driven by higher paid user adoption, brand loyalty and TAM expansion". He went on to state "While a positive demand environment benefits the group, MCFE is our top pick in the consumer security space, given 1) direct benefits from sustained PC shipment growth over the next couple years, given McAfee's exclusive long-term partnerships with 85% of name-brand OEMs and 2) our consumer survey showing McAfee remains the most popular vendor for both desktop and mobile AV protection. Stronger PC demand drives our estimates for consumer billings/revenue higher in 2021/22, resulting in our PT increasing from $25 to $27."

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