Symantec Corporation Break-Up A Positive According to Summit Research

A Symantec Corporation SYMC break-up may be positive according to a note issued by Summit Research Partners on Wednesday.

The note mentioned a Bloomberg news report suggesting Symantec is “in advanced talks to split up its business into two entities, with one that sells security software and another that does data storage.”

Analyst Richard Williams thought that “it will be positive for the shareholders as in this case both Symantec (the security software company) and the erstwhile Veritas were viable businesses on their own.”

Williams noted that the proposed two businesses could be more valuable with “de-merger fever" in the air over recent eBay Inc. EBAY and Hewlett-Packard Co. HPQ announcements.

The note concluded that Williams welcomed the de-merger trend “because though in the short run it might result in the loss of some jobs, in the long run, this will result in nimble, focused companies that innovate” and pass along lower prices to consumers.

Summit Research maintained a Buy Rating and $27 Price Target.

Symantec Corporation recently traded at $23.58, up 1.68 percent