How Will Symantec (SYMC) Stock Respond Today to This Analyst Downgrade?

NEW YORK (TheStreet) -- Symantec Corp. (SYMC) was downgraded at RBC Capital to "sector perform" from "outperform" today. The firm currently has a $26 price target on the stock.

RBC Capital's price objective would indicate a potential upside of 5.99%

Shares of Symantec, a security, backup and availability solutions firm, closed at $24.53 on Friday.

 

Separately, TheStreet Ratings team rates SYMANTEC CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate SYMANTEC CORP (SYMC) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • SYMANTEC CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, SYMANTEC CORP increased its bottom line by earning $1.27 versus $1.06 in the prior year. This year, the market expects an improvement in earnings ($1.89 versus $1.27).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 50.3% when compared to the same quarter one year prior, rising from $157.00 million to $236.00 million.
  • SYMC's revenue growth trails the industry average of 11.6%. Since the same quarter one year prior, revenues slightly increased by 1.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, SYMANTEC CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: SYMC Ratings Report
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