Shares of security software maker Symantec (SYMC - Get Report) posted strong gains on Monday after receiving an upgrade from analysts at Goldman Sachs, who believe the company has room for "sustained growth" among its current billings.
Symantec stock was up nearly 7% in trading Monday on the New York Stock Exchange, rising $1.58 to $24.57, after Goldman Sachs analyst Gabriela Borges upgraded the company to a buy from neutral and raised her 12-month target price to $28 from $23.
"FY20 should show improvement on essentially every key metric, driven by a return to more normalized execution, stabilization in business mix, and the benefit of revenue already on the balance sheet," Borges wrote in a research note to clients.
The analyst also pointed to expectations of "sustained growth" in current billings, which she considers the main indicator of the current and future success of Symantec's enterprise business. She further noted that Symantec shares currently trade at a 25% discount to peers with similar growth outlooks.
Symantec last month reported fiscal third-quarter results that surpassed analysts' expectations. The company posted revenue of $1.22 billion, roughly 3% above consensus forecasts, and said that stronger operating margins helped it beat per-share earnings expectations.