Morgan Stanley Reiterates Overweight Rating on Symantec Corporation
In a report published Wednesday, Morgan Stanley reiterated its Overweight rating on Symantec Corporation (NASDAQ: SYMC).
Morgan Stanley noted, “A core tenant of our positive thesis on SYMC is that better execution can drive the multiple, and Q3 is another step in this direction with billings, rev. margins, and cashflow (OCF) all outperforming, both the Americas and EMEA accelerating and OCF returning to growth at +15% YoY on the back of cost discipline. Con. currency (cc) non-GAAP org. rev. growth of +4% YoY is the best growth rate seen over 6 Qs, while better execution drove modest cc billings growth of +2% vs. our (1%) est. SYMC will set a conservative bar for Q4 and F14 at its event today, but we continue to believe a) our billings target of (2%) YoY in Q4 is not demanding and b) cons. EPS ests are at least 5-10% too low. With growth and execution improving, the stock still cheap, and nums low, we remain buyers.”
Symantec Corporation closed on Tuesday at $20.86.
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