UPDATE: Deutsche Bank Upgrades McAfee Corp. (MCFE) to Buy; Better than Expected Health that Will Continue to Outperform

February 24, 2021 4:30 AM EST
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Price: $25.13 +1.86%

Rating Summary:
    6 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 18 | Down: 10 | New: 17
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(Updated - February 24, 2021 7:34 AM EST)

Deutsche Bank analyst Patrick Colville upgraded McAfee Corp. (NASDAQ: MCFE) from Hold to Buy with a price target of $23.50 (from $20.50).

The analyst commented, "McAfee’s best-in-class consumer security franchise looks to be in better health than even we thought, with revenue accelerating to 23% in 4Q. We expect this division to continue to outperform expectations as PC shipments remain buoyant, critical/confidential activities are increasingly performed online, and average revenue per customer rises. We lift our FY21 consumer security forecast by 1ppt to 14%. McAfee’s enterprise business also surprised to the upside in 4Q, due to one-time tailwinds from sales of non-core products. We continue to be cautious about prospects here based on moribund billings trends and lackluster reseller commentary. However, CEO Peter Leav’s commentary at the Goldman Sachs Conference on Jan 12, 2021 suggests McAfee is open to separating this business. We think a potential spin-off could unlock 20% upside for shareholders, due to the conglomerate discount many (including us) apply to the combined entity."

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

Shares of McAfee Corp. closed at $19.45 yesterday.

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