Analyst Moves In on Cybersecurity Stock After Sell-Off

Only one other brokerage firm had a "buy" rating on Symantec before today

Jun 17, 2019 at 10:11 AM
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The last time we checked in on Symantec Corporation (NASDAQ:SYMC) a month ago it was selling off after an ugly earnings release, and Wedbush called the stock "dead money." After finding support in the $17.50-$18 area, SYMC stock closed last week at $19.36, and now another analyst is moving in, saying it's a good time to pick up the shares.

Specifically, Mizuho upgraded its opinion on the security "buy" from "neutral" and lifted its price target to $23 from $22, saying the stock's valuation is attractive after the sharp sell-off. Making this bull note even more noteworthy is the fact that it goes against the broader outlook on the Street. Coming into today, just one of the 18 covering brokerage firms recommended buying the shares.

In the options pits, some options traders have been betting on a move higher from the equity. Heavy interest in the June 19.50 call has driven the 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) to 6.94. These bulls will be glad to see SYMC trading up 3.2% this morning at $19.98.

If the upside move is to continue, Symantec stock will need to overcome the $20-$21 area that's oscillated between support and resistance in the past year. This region is also home to the 32-day moving average. Some option traders are already betting on an extended run, with new positions opening this morning at the weekly 6/28 20-strike call.

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