UBS Maintains a 'Buy' on Symantec (SYMC); Consistent Execution, Clean FQ2 Beat
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Price: $23.75 --0%
Rating Summary:
9 Buy, 27 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
9 Buy, 27 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UBS maintains a 'Buy' on Symantec (NASDAQ: SYMC) price target raised $1 to $21.00.
UBS analyst says, "Q2 clean beat is headlined by the 4th quarter in a row of constant currency double digit growth in deferred revenue. SYMC’s security and storage portfolio continues to show resilience to macro headwinds and we expect this to continue. FQ3 guide below the Street does not adjust for FX and on a constant currency basis guidance was $10-$25M ahead of the Street. Our soft ware playbook suggests buying stocks under 2x sales and, trading at 1.9x CY12E revs, we believe SYMC remains attractive with a P&L supported by a highly predictable revenue stream (70%+ each Q flows off the BS).
"Adjusting Estimates: Raising FY12e to $6.79B/$1.63 (+9.8% y/y) from $6.78B/$1.60 prior. FQ3e to $1.71B/$0.41 from $1.72B/$0.39 prior with revenue down on the stronger dollar with EPS offset by stronger margins. Lowering FY13e to $7.17B/$1.82 from $7.23B/$1.84 on a slower growth estimate in the Storage division (4% growth vs. 7% prior). FY13e revs now +5.5% vs. Street +5.1%."
For more ratings news on Symantec click here and for the rating history of Symantec click here.
Shares of Symantec closed at $18.49 yesterday.
UBS analyst says, "Q2 clean beat is headlined by the 4th quarter in a row of constant currency double digit growth in deferred revenue. SYMC’s security and storage portfolio continues to show resilience to macro headwinds and we expect this to continue. FQ3 guide below the Street does not adjust for FX and on a constant currency basis guidance was $10-$25M ahead of the Street. Our soft ware playbook suggests buying stocks under 2x sales and, trading at 1.9x CY12E revs, we believe SYMC remains attractive with a P&L supported by a highly predictable revenue stream (70%+ each Q flows off the BS).
"Adjusting Estimates: Raising FY12e to $6.79B/$1.63 (+9.8% y/y) from $6.78B/$1.60 prior. FQ3e to $1.71B/$0.41 from $1.72B/$0.39 prior with revenue down on the stronger dollar with EPS offset by stronger margins. Lowering FY13e to $7.17B/$1.82 from $7.23B/$1.84 on a slower growth estimate in the Storage division (4% growth vs. 7% prior). FY13e revs now +5.5% vs. Street +5.1%."
For more ratings news on Symantec click here and for the rating history of Symantec click here.
Shares of Symantec closed at $18.49 yesterday.
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