Symantec Shares Rose Yesterday, Limiting Its Poor Run in 2018



SYMC rose 4.3% yesterday

Shares of cybersecurity company Symantec (SYMC) rose 4.3% on September 18. The stock is currently trading at $20.65, 16% above its 52-week low of $17.81 and 40% below its 52-week high of $34.20.

Symantec shares have fallen 26% in 2018. The stock has been affected by falling revenue, and it fell 33% on May 11. At that time, Symantec revealed that it was launching an internal investigation into concerns raised by a former employee.

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Analyst outlook

Of the 28 analysts tracking Symantec, 11 have recommended “buys” on its stock, 16 have recommended “holds,” and one has recommended a “sell.” The average 12-month target price for Symantec is $21.70, indicating that it’s trading at a discount of 5% to its current price.

Revenue fall in a high-growth market

Investors are concerned about Symantec’s falling revenue in the high-growth network security market. Symantec is losing market share to peers Cisco (CSCO), CheckPoint (CHKP), Palo Alto Networks (PANW), and Fortinet (FTNT), according to IDC.

Symantec’s network security sales fell over 2% in the second quarter compared to the industry’s growth of 17%. The company’s revenue is expected to fall 5% to $4.73 billion in fiscal 2019. Its revenue is, however, expected to rise 4.8% to $4.95 billion in fiscal 2020 and 3.2% to $5.1 billion in fiscal 2021.

The company’s EPS are expected to rise at a compound annual growth rate of 11% in the next five years compared to 7% in the last five years.


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