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Analyst Says Now Is The ‘Golden Time’ For Symantec To Sell Itself To Broadcom

Courtesy of Benzinga.

Analyst Says Now Is The 'Golden Time' For Symantec To Sell Itself To Broadcom

Broadcom Inc (NASDAQ: AVGO)’s rumored interest in buying cybersecurity company Symantec Corporation (NASDAQ: SYMC) could come at a price tag as high as $28 per share, according to Wedbush.

The Analyst

Wedbush’s Daniel Ives maintains a Neutral rating on Symantec with a $19 price target.

The Thesis

Symantec is dealing with multiple headwinds, Ives said, including Greg Clark’s sudden resignation in May, recent “soft” earnings and guidance, integration of Blue Coat and secular headwinds.

Symantec was previously rumored to be in talks to sell itself in late 2018, but the company likely felt at the time its prospects were “bright” and Clark wanted to “prove this” to the Street. Ives said the company is in a much different position now having lost its “key visionary.”

As such, now could be the “golden time” for Symantec to consider selling itself for $26 to $28 per share, which would imply a multiple of four times EV/revenue.

From Broadcom’s point of view, Ives said a potential acquisition of Symantec would generate notable synergies with its CA Technologies business it acquired in 2018. While the acquisition seems logical in theory, it will still generate concerns about its overall software strategy.

Price Action

Shares of Symantec closed Wednesday higher by 13.5% at $25.10, while Broadcom was lower by 3.5% to $284.89.

Related Links:

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Latest Ratings for SYMC

Date Firm Action From To
Jun 2019 Upgrades Neutral Buy
Jun 2019 Downgrades Equal-Weight Underweight
May 2019 Initiates Coverage On Market Perform

View More Analyst Ratings for SYMC


View the Latest Analyst Ratings

Posted-In: Cybersecurity Daniel Ives semiconductor WedbushAnalyst Color M&A Analyst Ratings Best of Benzinga


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