Symantec is looking to unlock more value in its plans to spin off its Veritas data-storage and recovery business, according to recent reports. The question remains how this will affect the company. Credit Suisse thinks it might have the answer with its Outperform rating and a price target of $30, which is tied for the highest price target on Wall Street.
Symantec shares rose handily following the Wall Street Journal’s report that the cybersecurity and storage software firm was considering a sale of Veritas. The report suggested that this unit could be valued at over $8 billion, according to “sources close to the matter.” At the same time, it added that Symantec had reached out to other tech companies and private equity firms about buying the business.
A split between the old Symantec and Veritas has been in the works for some time. It also has been said that taxes could be an issue in the sale.
Credit Suisse continues to expect Symantec’s stock to move higher, given that at least two potential bidders could exist for the spin-off of Veritas. Despite recent media reports, the firm does not expect a merger or acquisition to occur until after the spin-off. Although, Credit Suisse did lower its EPS estimates going forward:
- Fiscal 2015 lowered to $1.88 from $1.89.
- Fiscal 2016 lowered to $1.80 from $1.92.
- Fiscal 2017 lowered to $1.89 from $2.02.
Shares of Symantec were up 1.3% at $25.66 on Thursday morning. The stock has a consensus analyst price target of $25.24 and a 52-week trading range of $21.07 to $27.32.
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