AmTech Calls McAfee (MFE) Top Pick in Large-Cap Software

American Technology Research reiterates its Buy rating and $34 price target on McAfee (NYSE: MFE) following "an excellent Q3 and strong outlook". The firm says that McAfee remains its top pick in the large-cap software space.

The firm believes that the security industry has held up nicely in the current market environment, and points out that McAfee "has the strongest portfolio and execution within the segment." Given a highly visible business model that creates recurring revenue streams, not to mention a strong balance sheet, AmTech sees "an excellent buying opportunity and would be aggressive buyers at these levels."

Following the solid earnings report, the firm said it continues to believe that the Street's CY09 estimates on McAfee "are on the conservative side as they do not adequately reflect the incremental revenue opportunity from major new OEM partnerships and VSOE accounting around the SafeBoot acquisition..."

With shares of McAfee up nearly 16% to $32.09 on yesterday's earnings report, the stock is almost already trading near AmTech's $34 price target.

McAfee, Inc. operates as a security technology company that secures systems and networks from known and unknown threats worldwide.

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