NEW YORK (TheStreet) -- Intel's (INTC) - Get Intel Corporation (INTC) Report $7.7 billion offer for software security firm McAfee (MFE) sent shares of other security firms upward Thursday as analysts predicted upside -- and more potential deals -- for the sector.
"Given the premium that
Intel paid, we expect there were likely multiple parties interested in McAfee, which further supports our positive view of security software, especially
, which is the most similar asset in the space," wrote Macquarie Securities analyst Brad Zelnick. "We expect this deal will bode well for
Check Point Software
Blue Coat Systems
and software overall."
In late day trading, McAfee was tech's biggest leader, up about 57% to $47.10. Chief rival Symantec, which is now being
, was up 5.96% to $13.32. Check Point was up 42 cents, or 1.23%, to $34.72 and Blue Coat was up 16 cents to $18.63.
Intel, however, was down 3.17% to $18.97 as investors waffled on whether or not the expensive deal will offer upside for the chip maker's longterm strategy. "It's a strange move that investors will no doubt have their trouble getting their heads around," Crawford Del Prete, IDC's executive vice president, worldwide research, told
. "It's one of those that's going to take awhile to see if Intel can do the job while keeping its business strong
as next-generation mobile continues to grow."
Not every security company received a boost. Shares of some smaller security firms were heading in the opposite direction following news of Intel's McAfee acquisition.
stock, for example, was down 71 cents, or 3.90%, to $17.50, while
dipped 49 cents to $26.98.
Elsewhere in the tech sector, HP shares fell 77 cents to $40.59 ahead of the company's
, which reports second-quarter results after market close, saw its stock dip 15 cents to $12.05.
-- Reported by James Rogers in New York
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