Morgan Stanley reiterated its Equal-weight rating on Symantec SYMC after attending the company's analyst day.
In a research report published today, Morgan Stanley states, "SYMC highlighted
DLP, SaaS and Encryption as key near-term growth
drivers, while product strategies ramp around secular
trends like virtualization, cloud and mobile. However,
with the emerging growth areas representing <10% of
revs today, organic growth at SYMC is likely to remain
muted. Mgmt believes better product quality, improving
sales productivity, and emerging products opportunities
will yield a 5-6% 3-yr org. rev. CAGR and drive EPS at a
9-11% pace. Cons. currently forecasts a 6% rev. CAGR
with EPS up 12% thru FY13. At 11X CY12 EPS, SYMC
is not expensive; however, we look for more comfort in
the long-term growth profile before getting more
constructive on the stock."
At the moment, Morgan Stanley does not have a price target set on Symantec's shares. On Thursday, Symantec added 2.01% to its value to close the day at $19.31. Its shares lost some of their yesterday's losses, after falling 0.73% to $19.17.
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