NEW YORK (TheStreet) -- Lifelock (LOCK) stock has had its price target cut to $16 from $20, Pacific Crest said Friday. The firm said estimates have also been reduced given regulatory uncertainty. An "outperform" rating has been reiterated.
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Separately, TheStreet Ratings team rates LIFELOCK INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate LIFELOCK INC (LOCK) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Diversified Consumer Services industry. The net income has significantly decreased by 25.6% when compared to the same quarter one year ago, falling from -$4.12 million to -$5.17 million.
- LIFELOCK INC's earnings per share declined by 20.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, LIFELOCK INC increased its bottom line by earning $0.53 versus $0.15 in the prior year. For the next year, the market is expecting a contraction of 13.2% in earnings ($0.46 versus $0.53).
- Compared to its closing price of one year ago, LOCK's share price has jumped by 27.40%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- Net operating cash flow has increased to $18.32 million or 43.14% when compared to the same quarter last year. Despite an increase in cash flow, LIFELOCK INC's cash flow growth rate is still lower than the industry average growth rate of 82.94%.
- The gross profit margin for LIFELOCK INC is currently very high, coming in at 73.57%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -4.80% is in-line with the industry average.
- You can view the full analysis from the report here: LOCK Ratings Report