13:35 SYMC Symantec: Quarter and Guidance Impacted by FX Headwind -- Janney (21.95 -1.84)
-Update- Firm notes that co's revenue guidance below pre-merger guidance (impacted by foreign exchange and a change to ratable revenue recognition) is likely to disappoint some investors. While the quarterly results were somewhat confusing, firm believes the company has reset the bar and is now in a position to meet and likely exceed street expectations. With the merger now behind SYMC, believes that the stock will start to trade on the free cash flow value of the company. With $3 billion in its repurchase program, believe co will be aggressive in repurchasing its own stock if the price doesn't rebound substantially. Believe the risks associated with the merger with VERITAS are discounted in Symantec's stock price, and the reward to risk is favorable. Over the next 12 months, believe the shares have upside potential of over 30%, as the market refocuses on the growth in free cash flow the combined entity can generate, and reit BUY rating.