On Monday morning, analysts at Barclays reiterated their Overweight rating and $26 price target on shares of NortonLifeLock (NLOK).
The analysts believe NortonLifeLock will do well when it reports fiscal Q2 results for three reason: web traffic to buy.norton.com continues grow thanks to more promotional activity, this is the last quarter with stranded costs, and even though the stock has lagged after the recent sales of convertible securities, the analyst believe this is a good entry point more than a negative signal.
Web traffic means your website is getting the attention it needs. Over the past few quarters, web traffic has increased by approximately 11%. Although some analysts were worried last quarter about how much more NLOK was available to grow with such high numbers, the analysts feel confident in their 50k net add estimate for 2Q. In addition, NLOK has also been giving many promotions that help the website gain traffic. NLOK will also have bigger pools up for renewals of their service for the first time starting next quarter.
NortonLifeLock had 95% of the stranded cost removed as of last quarter, which makes Q2 the last to remove the small percentage left. Analyst expects NLOK will get to $1.50 in run-rate EPS in Q3, which gives Q3 a clean start.
Not to mention, NLOK stock lagged after the sales because Silver Lake and Bain sold out of the majority of their convert positions. This resulted in the stock being down ~6% since the last earnings release, which the analysts feel provides an attractive entry point since they expect net adds to beat and fiscal year 2021 EPS estimates to go up.
Lastly, NLOK competitor, McAfee, has also released great numbers with its S-1 filing, with the analysts noting that McAfee has seen “ (1) 16.6M direct subscribers with
Analysts Reiterate Overweight Rating on Abbott Laboratories following European Approval of Freestyle Libre 3
On Monday, J.P. Morgan and Morgan Stanley reiterated their Overweight ratings on Abbott Laboratories (ABT). The company’s newest continuous glucose monitor (CGM), the Freestyle Libre 3, recently received a CE mark of approval. The system has shown to be a major evolutionary improvement over the current Libre 2 which leads analysts to believe that there are multiple long-term growth opportunities for Abbott.
The next-gen Libre CGM, Libre 3 will leverage Bluetooth technology to have continuous, real-time glucose readings automatically delivered to your smartphone every-minute (vs user scanning required in the past) allowing for unsurpassed 14-day accuracy and a ~70% size reduction from the Libre 1 & 2, becoming the world’s smallest and thinnest sensor.
The FreeStyle Libre 3 system was designed to fit perfectly into people’s everyday lives, allowing users to check their glucose as often as they like by just looking on their phones. This innovation allows the users to live a more comfortable life and gain a deeper understanding of their glucose levels with the real-time data given by the smartphone. The cost of the FreeStyle Libre 3 will also be the same as previous generations of the device.
The Senior Vice President of Diabetes Care for Abbott Laboratories mentioned, “Abbott won’t stop innovating when there’s room to raise the bar. We’ve done that again with FreeStyle Libre 3, the smallest sensor that delivers life-changing benefits and best-in-class accuracy,”.
The transition from Abbott’s current system to its next-gen Libre CGM, Libre 3, shouldn’t require any extra hassle. The Libre 3 system will have identical algorithms and chemistry compared to the Libre 2.
As highlighted by the analysts at JPMorgan, the ”Libre 3 essentially adds three things: (1) it shrinks Libre’s already small footprint to the size of two stacked pennies. The approval is for wear on the arm,