UPDATE: Bank of America Reiterates on Symantec Following Termination of Steve Bennett
In a report published Friday, Bank of America analyst Nikolay Beliov reiterated an Underperform rating on Symantec (NASDAQ: SYMC), but lowered the price target from $18.00 to $17.00.
In the report, Bank of America noted, “The company terminated Steve Bennett as President and CEO and appointed board member Michael Brown as interim President and CEO, until a new permanent CEO is found following a search process which is beginning immediately. The company maintains 4Q guidance and is sticking with the 5/30 plan. This turn of events confirms our doubts about the feasibility of the 5/30 plan.
"The original 5/30 plan implied ~$7.9bn of revenues in FY17E. With FY14E coming in at -3% y/y, and assuming Street revenue growth of 0% in FY15 (vs our -3%) and 5% each in FY16E and FY17E, FY17E revenues would come in at $7.4bn, or $500mn or 6% below the original target. This also puts into question the achievability of 36% operating margins.”
Symantec closed on Thursday at $20.91.
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