Estimates On MFE Already Reflect FX Headwinds: JP Morgan

Analysts at JP Morgan reiterate their "overweight" rating on McAfee Inc

. The target price for MFE is set to $50. JP Morgan has not updated McAfee estimates at this time “given the recent revision to our forecasts on May 26, which accounted for FX headwinds associated with the weakening euro.” According to the analysts, “If MFE customers from traditional channels switch to the ISP channel en masse, we do not believe that the likely share gain in volume would be enough to offset the decline in ARPS.” “While the ISP channel is still largely a consumer phenomenon, some enterprise, or at least SMB security requirements are now being provided by ISPs, and this trend will likely continue. Again, MFE is well positioned here and may actually benefit at first, unless a dramatic change ensues with a similar drop in pricing,” the analysts add.