- Goldman Sachs analyst Gabriela Borges and Morgan Stanley analyst Keith Weiss see similar upside in Symantec (SYMC +0.8%), setting Buy and Overweight ratings, respectively. Borges has a $26 price target and Weiss $27 (current price $22.68).
- Borges cites new margins and free cash flow profile, cost savings, share price stabilization and 2017 proxy refresh cycle tailwinds. She additionally comments on Symantec's acquisition of Blue Coat: "While we prefer to be conservative on technology synergies, both Symantec and Blue Coat have sticky installed bases and deep customer engagements that can drive stability, despite intensifying endpoint/network competition."
- Weiss cites "increased consolidation of security functionality onto broader platforms, increased visibility across threat vectors and more automation across the security architecture," enterprise security growth drivers and cost synergies. On the Blue Coat deal: "While mergers hold risk, if the new mgmt team well executes to this potential, a stronger growth profile should push multiples higher."
- Symantec is up nearly 25% since the acquisition was announced in June.