Mizuho increased the price target on NortonLifeLock’s stock to $27 (16% upside potential) from $23 and reiterated a Buy rating, saying that the cybersecurity solution provider reported “strong” 1Q results.
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Mizuho analyst Gregg Moskowitz stated in a note to investors on Friday that NortonLifeLock’s (NLOK) results are consistent with the view that the company’s products are “more important in the current environment.” He also believes that stock’s valuation makes it more attractive for investment.
On August 6, NortonLifeLock reported that adjusted EPS grew 48% to $0.31 year-on-year, beating analysts’ expectations of $0.22. Revenues increased 4% to $614 million year-over-year, surpassing Street estimates of $599.7 million.
The company’s quarterly results benefited from a spike in demand for security solutions as a shift of work to home from on-premise amid COVID-19 pandemic has heightened the cyber-attack risks. Additionally, NortonLifeLock’s cost-cutting initiatives, including workforce reduction and divestments of low margin businesses, boosted its bottom-line results.
Currently, the Street has a cautiously optimistic outlook on NLOK stock. The Moderate Buy analyst consensus is based on 5 Buys versus 7 Holds. The average price target of $24.30 implies upside potential of about 4% to current levels. (See NLOK stock analysis on TipRanks).
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