Market Overview

Analyst Says Now Is The 'Golden Time' For Symantec To Sell Itself To Broadcom

Share:
Analyst Says Now Is The 'Golden Time' For Symantec To Sell Itself To Broadcom

Broadcom Inc (NASDAQ: AVGO)'s rumored interest in buying cybersecurity company Symantec Corporation (NASDAQ: SYMC) could come at a price tag as high as $28 per share, according to Wedbush.

The Analyst

Wedbush's Daniel Ives maintains a Neutral rating on Symantec with a $19 price target.

The Thesis

Symantec is dealing with multiple headwinds, Ives said, including Greg Clark's sudden resignation in May, recent "soft" earnings and guidance, integration of Blue Coat and secular headwinds.

Symantec was previously rumored to be in talks to sell itself in late 2018, but the company likely felt at the time its prospects were "bright" and Clark wanted to "prove this" to the Street. Ives said the company is in a much different position now having lost its "key visionary."

As such, now could be the "golden time" for Symantec to consider selling itself for $26 to $28 per share, which would imply a multiple of four times EV/revenue.

From Broadcom's point of view, Ives said a potential acquisition of Symantec would generate notable synergies with its CA Technologies business it acquired in 2018. While the acquisition seems logical in theory, it will still generate concerns about its overall software strategy.

Price Action

Shares of Symantec closed Wednesday higher by 13.5% at $25.10, while Broadcom was lower by 3.5% to $284.89.

Related Links:

Symantec Shares Are Flying On Report Broadcom Is Eyeing A Takeover

Chipmaker Trader Sentiment Received A Major Boost From G-20

Latest Ratings for SYMC

DateFirmActionFromTo
Jun 2019UpgradesNeutralBuy
Jun 2019DowngradesEqual-WeightUnderweight
May 2019Initiates Coverage OnMarket Perform

View More Analyst Ratings for SYMC
View the Latest Analyst Ratings

Posted-In: Cybersecurity Daniel Ives semiconductor WedbushAnalyst Color M&A Analyst Ratings Best of Benzinga

 

Related Articles (SYMC + AVGO)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
MSGNDowngrades
HUBBInitiates Coverage On160.0
CTREUpgrades25.0
GLNGMaintains27.0
SEMaintains45.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Opportunity With A Battered Energy ETF

Cannabis Stocks With Plenty Of Green Ahead