Analyst Robert Stimson von Banc of America Securities stuft die Aktien von Symantec von Market Performer auf Buy hoch. Als 12 Monatskursziel wird ein Kursziel von 55 $ angegeben. Das Geschäft mit Anti Viren Software verlaufe besser als ursprünglich angenommen.
Auszugsweise Kopie der Researchnote :
Banc of America Securities LLC currently maintains a market in this security and otherwise purchases and sells securities of this company as principal. Banc of America Securities LLC and/or its affiliates expects to receive, or intends to seek, compensation during the next three months for investment banking services from this company, its subsidiaries or affiliates.
We are upgrading SYMC’s shares to Buy from Market Performer and establishing a 12-month price target of $55, representing a 30x multiple to our CY04 EPS estimate of $1.82, which is in line with peers and the historical group multiple.
Underlying fundamentals of anti-virus business are much better than our initial assumption. We believe renewal strength coupled with recent price increases should buoy results in this segment through 2003.
Accordingly, we are raising our FY04 revenue and EPS estimates significantly. Revenue goes to $1.5 billion from $1.4 billion and EPS to $1.72 from $1.62. We are also raising our 3Q03 and 4Q03 EPS estimates each by $0.01 to $0.39.
We believe the scaling of the company’s enterprise business will drive upside to our estimates. The segment will benefit from larger deals associated with centralized management. Those deals as well as better than expected cost management, particularly with its recent acquisitions, could potentially expand margins above our/street expectations.
We believe 2003 will represent the year in which SYMC garners an “enterprise” multiple. Currently trading at a 20% discount to its peers, we believe SYMC’s shares have historically been discounted due to its desktop and consumer exposure. We believe this discount will fade as the earnings power of its centralized security management unfolds in 2003 & 2004.
Auszugsweise Kopie der Researchnote :
Banc of America Securities LLC currently maintains a market in this security and otherwise purchases and sells securities of this company as principal. Banc of America Securities LLC and/or its affiliates expects to receive, or intends to seek, compensation during the next three months for investment banking services from this company, its subsidiaries or affiliates.
We are upgrading SYMC’s shares to Buy from Market Performer and establishing a 12-month price target of $55, representing a 30x multiple to our CY04 EPS estimate of $1.82, which is in line with peers and the historical group multiple.
Underlying fundamentals of anti-virus business are much better than our initial assumption. We believe renewal strength coupled with recent price increases should buoy results in this segment through 2003.
Accordingly, we are raising our FY04 revenue and EPS estimates significantly. Revenue goes to $1.5 billion from $1.4 billion and EPS to $1.72 from $1.62. We are also raising our 3Q03 and 4Q03 EPS estimates each by $0.01 to $0.39.
We believe the scaling of the company’s enterprise business will drive upside to our estimates. The segment will benefit from larger deals associated with centralized management. Those deals as well as better than expected cost management, particularly with its recent acquisitions, could potentially expand margins above our/street expectations.
We believe 2003 will represent the year in which SYMC garners an “enterprise” multiple. Currently trading at a 20% discount to its peers, we believe SYMC’s shares have historically been discounted due to its desktop and consumer exposure. We believe this discount will fade as the earnings power of its centralized security management unfolds in 2003 & 2004.