Avondale Ups Symantec to Market Outperform

Analyst P. Sean Jackson sees continued strong performance for the internet-security provider

Avondale upgrades internet-security provider Symantec (SYMC ) to market outperform from market perform.

Analyst P. Sean Jackson notes he and the consensus had a 39 cents second-quarter earnings-per-share estimate. He notes that consumer product revenue is once again a source of strength, contributing $315.4 million, vs. his $295.2 million estimate.

Jackson says the shares are trading at 28.6 times his calendar year 2005 earnings-per-share estimate, vs. 25 times the peer group average. He believes Symantec can sustain a premium multiple due to its favorable macro trends and lack of negative catalysts in the near-term.

He upgrades based on continued strong performance and lack of a negative catalyst going forward. He raises his $1.60 fiscal 2005 (March) earnings-per-share estimate to $1.66, and $1.75 fiscal 2006 to $1.98. He also raises his $50 price target to $65.