UPDATE: Stifel Assumes McAfee Corp. (MCFE) at Hold

(Updated - February 17, 2021 4:18 PM EST)

Stifel analyst Brad Reback assumes coverage on McAfee Corp. (NASDAQ: MCFE) with a Hold rating and a price target of $20.00.

The analyst comments "While we expect that the Consumer business will continue to grow revenue and Adjusted EBITDA annually at a double-digit clip in coming years (McAfee's Consumer business is the company's growth engine as well as its primary source of profitability), given the Enterprise business’ lack of potential nearterm catalysts sufficient in magnitude to re-accelerate growth, we forecast the company to post low-to-mid single digit future revenue growth in conjunction with persisting margin expansion, as McAfee’s Consumer renewal motion grows increasingly efficient and its Enterprise business continues to churn low-margin customers off of the platform. We arrive at our $20 target price by applying a ~3.8x multiple to our CY22E EV/Revenue estimate of $3,084mn; we arrived at our ~3.8x multiple by applying a 0.99 growth multiplier to our assumed 3.8% CY22E revenue growth rate."

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 $19.59 yesterday.

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