MFE Has Strong Future Business Indicators

Analysts at UBS upgrade McAfee (NYSE: MFE) from "neutral" to "buy." The target price for MFE is set to $46.

According to UBS, investor concerns regarding McAfee’s margins and consumer revenue issues are overblown. HP’s (NYSE: HPQ) acquisition of 3Com (NASDAQ: COMS) is unlikely to be a meaningful threat to MFE, the analysts say. MFE has a reseller agreement with HP and competes with 3Com’s TippingPoint suite of products.

Being the largest independent pure-play vendor of IT security solutions, MFE is poised to benefit from the reinvestment in aging security infrastructures in 2010, the analysts mention. MFE has long-term margin drivers and is a strong takeout candidate, the analysts add.