Symantec To Surge On Cost Cutting
Symantec shares are set to rise at least 25 percent or more on the back of a fresh round of cost cutting and the recent acquisition of Blue Coat Systems.
The company can now sell Blue Coat’s web and cloud protection services to its existing base of more than 370,000 business clients as demand to block hacking attempts grows according to Barrons.
Plus, the newest Norton software is “industry-leading,” the newspaper said, citing Andrew Nowinski, an analyst for investment bank Piper Jaffray.
Nowinski predicts the company’s earnings will grow 12 to 14 percent from fiscal 2019 to 2021.
Plans to trim its workforce by 10 percent and cut $550 million (A$730 million) in costs by the end of 2018 will also help boost the company’s earnings he said.
Symantec shares have already risen 40 percent this year, closing at $23.72 on Friday, but Barrons reports Franklin Templeton portfolio manager Christian Correa as saying he sees “no reason the stock can’t be in the low $30s” within 12 to 18 months.