Jefferies & Company Comments On Potential Symantec Corporation Breakup

Yesterday the New York Post reported that activist investors have begun to acquire Symantec Corporation SYMC shares with a goal of unlocking value via a breakup. “We estimate a sum of the parts valuation of $25-27 per share,” Jefferies & Company writes. “Our recent LBO analysis pointed to ~$20 per share.” Jefferies & Company said that its $17 price target is 9x EV/FY11 FCF per share estimate of $1.80 plus cash. This multiple is within the historical 9x-12x range and equates to a 10% FCF yield. Symantec Corporation currently trades at $16.57.