Morgan Stanley Reports Symantec Finding Hidden Gem In China

According to Morgan Stanley, Symantec SYMC is finding a hidden gem in China. Morgan Stanley reported that the Huawei Symantec JV appears to be much more successful than it had previously thought, sustaining 50% plus growth off a revenue base now likely in excess of $350 million. “We recently met with several senior managers from Huawei Symantec in China who described the JV hitting its stride in 2010 and poised for continued strong growth in 2011, as existing products continue to gain traction and the product portfolio expands. Growth remains the top priority and we would expect profitability to remain limited in the near-term. Our analysis of similar public vendors with comparable growth rates would suggest an overall value of the JV in excess of $3B, which given their 49% stakegives SYMC an attractive $1.5B+ asset or $2 per share, which many investors may not be aware of.” Symantec closed yesterday at $18.26.