Market Overview

UBS Upgrades Symantec, Says RemainCo Consumer Franchise Seems Undervalued

UBS Upgrades Symantec, Says RemainCo Consumer Franchise Seems Undervalued

Amidst sweeping executive and strategic changes at Symantec Corporation (NASDAQ: SYMC), the market seems to have overlooked the “steadiness” of the “RemainCo” Consumer franchise, according to UBS.

The Analyst

UBS analyst Fatima Boolani upgraded Symantec from Neutral to Buy, while raising the price target from $23 to $27.

The Thesis

Symantec has closed the sale of its Enterprise business, which contributed 50% of total revenue and 10% of EBIT. The company is scheduled to report earnings on Wednesday, and “we see catalysts for investors to revisit a cleaner, more profitable, and more focused business at an attractive multiple,” Boolani said in the note.

Following the Enterprise business divestiture to Broadcom Inc (NASDAQ: AVGO), Symantec has changed its name to NortonLifeLock and its dividend yield goes to an attractive 3%.

Amid these transformational changes, investors seem to be ignoring the company’s Consumer business, which seems primed to achieve management’s target of more than $1.50 per share in earnings and over $900 million in free cash flows, the analyst mentioned.

“Now unencumbered by the distracting capital intensive Enterprise business, measured reinvestments should stabilize subscriber declines,” Boolani wrote.

She added that the company has several avenues to achieve growth in average revenue per user, as it leverages its market leading position in consumer security with greater focus.

Price Action

Shares of Symantec were up 1.45% to $23.75 at the time of publishing on Tuesday.

Related Link:

Broadcom Falls, But Analysts Optimistic Chip Demand Has Bottomed And Acquisitions Will Help

Latest Ratings for SYMC

Nov 2019UBSUpgradesNeutralBuy
Jun 2019MizuhoUpgradesNeutralBuy
Jun 2019Morgan StanleyDowngradesEqual-WeightUnderweight

View More Analyst Ratings for SYMC
View the Latest Analyst Ratings


Related Articles (SYMC)

View Comments and Join the Discussion!

Posted-In: Fatima Boolani UBSAnalyst Color Upgrades Price Target Analyst Ratings

Latest Ratings

TSLAJP MorganMaintains125.0
INTCTruist SecuritiesMaintains64.0
FBTruist SecuritiesMaintains320.0
AAPLCowen & Co.Maintains153.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
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.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
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