Symantec stock upgrade
The stock of cybersecurity company Symantec Corporation (SYMC) rallied over 3% on June 17 at 8:27 AM ET after Mizuho Securities analyst Gregg Moskowitz raised his rating and price target on the stock due to its attractive valuation.
Mizuho has upgraded the stock to a “buy” from “neutral” rating and raised its price target to $23 from its earlier target of $22, according to a CNBC report. The new target reflects a potential upside of 18.8% from the stock’s closing price of $19.36 on June 14.
Mizuho’s view on Symantec
According to Mizuho analyst Gregg Moskowitz, Symantec stock looks attractive despite the intense competitive environment and weakness in its business. Symantec stock has been under pressure since the software company announced the resignation of its CEO, Greg Clark, and forecast weaker-than-expected revenue and profit guidance for the upcoming quarter. For the first quarter, Symantec expects adjusted EPS of $0.30–$0.40 and revenue of $1.18 billion–$1.21 billion.
Moskowitz remains optimistic about the stock, as he believes that the company’s new management team will focus on improving its margins, particularly within the Enterprise Security segment. Currently, the company is expected to incur higher costs in the Enterprise Security segment in the first quarter due to massive investments in infrastructure to support its cloud business.
Moskowitz also expects the company to further trim of its employee numbers in the near term after the company announced an 8% head count reduction in August 2018.