CS First Boston downgrades Symantec (SYMC) to neutral form outperform.
Analyst Phillip Winslow says after reviewing the positives and negatives of the Symantec Veritas merger (announced Dec. 16, 2004), he thinks a neutral rating is warranted over the near term.
He thinks slower growth in Veritas' core storage software markets will negatively impact the company's growth profile. Although Symantec will possess much broader product portfolio when merged, he is concerned a combined product set in its present status does not form a truly holistic infrastructure management solution.
In addition to security competitors, Winslow also sees increased competition from BMC Software, Computer Associates, EMC, Hewlett Packard, IBM, and Mercury Interactive.