3 Reasons To Buy Shares Of Symantec This Year

Barclays research analyst Saket Kalia upgraded Symantec Corporation SYMC to Overweight with a price target of $38.

Justification For Upgrade

The upgrade was based on three primary reasons:

1. Symantec has become more competitive in the enterprise industry, which should allow for additional revenue growth. Kalia noted pairing stronger enterprise fundamentals with a higher subscription mix should provide Symantec with acceleration and growth into the fiscal year of 2019.
2. Symantec does not need significant penetration into Norton’s subscriber base to realize revenue synergies from LifeLock. According to Kalia, “Norton’s 25 million subscriber base and upsell opportunity with LifeLock’s bundled pricing could move the needle for Consumer Security.” Additionally, he pointed out how even low penetration into this base could move the needle on a consumer growth profile that has been declining.
3. Kalia believes Symantec can generate between $1.5 billion and $2 billion of free cash flow. He expects Symantec's 2017 Financial Analyst Day next week to shed more light on its free cash flow generation.