SPY391.77+4.27 1.10%
DIA319.53+4.14 1.31%
IXIC13,597.97+132.77 0.99%

Research Alert: CFRA Maintains Hold Opinion On Shares Of Nortonlifelock Inc.

· 02/07/2021 18:49

11:45 PM EST, 02/07/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target price at $25, applying an EV/EBITDA multiple of 11.9x to our FY 22 (Mar.) estimate, a slight premium to its 10-year historical average multiple at 11.1x, reflecting recent strong results. We raise our FY 21 EPS estimate by $0.03 to $1.43 and increase FY 22's by $0.05 to $1.60. NLOK reported Dec-Q operating EPS of $0.38 vs $0.25, $0.01 above consensus. Dec-Q revenue increased 6%, with 15% growth in partner revenue, aided by strong international expansion, and a 5% increase in its direct-to-consumer sales, with broad-based growth across the portfolio and strong performance during the holiday season. NLOK added 876k direct customers, while ARPU increased 1% to $9.10 and customer retention remained stable at 85%. We expect NLOK will continue to look to international expansion to support growth, through both acquisitions and higher marketing spending.