Needham & Company Reinstates LifeLock (LOCK) at Buy

Needham & Company reinstates coverage on LifeLock (NYSE: LOCK) with a Buy rating and a price target of $17.00 after the company settled with the FTC.

Analyst Scott Zeller commented, "On Thursday, LOCK announced the FTC Commissioners had accepted the proposed settlement announced in October. In our view, the acceptance by senior FTC administrators of the David Boies-led agreement significantly reduces risk on LOCK shares, and should minimize further disruption and distraction of management. While the federal court in AZ must still sign off on the deal, we believe this is likely, as the FTC is the plaintiff who sued in AZ federal court. The $113m total cost of settlement is in-line with previous messaging, as is the fact that current business practices are unaffected. We believe the reduced distraction for management and lessened headline risk will improve results and moderate churn. As such, we are introducing a BUY rating, a $17 target, and are raising estimates."

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

Shares of LifeLock closed at $13.99 yesterday.

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