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NortonLifeLock Inc NLOK

Rating as of

Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

NortonLifeLock Continues Its Strong Growth and Margin Profile Streak in Q1; Maintaining $21 FVE

Mark Cash Senior Equity Analyst

Analyst Note

| Mark Cash |

We are maintaining our $21 fair value estimate for no-moat NortonLifeLock after reporting first-quarter earnings. Top line growth and earnings in the quarter closely matched our anticipations and our fiscal 2022 outlook remains largely intact after NortonLifeLock reiterated yearly expectations initially stated in May. Although we believe NortonLifeLock is executing well in finding growth in consumer safety, building a security platform expanding beyond antivirus solutions, while keeping a very strong operating profile, we remain more cautious about the long-term competitive environment in consumer cybersecurity. We view shares as modestly overvalued and believe investors should wait for a larger margin of safety.

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Company Profile

Business Description

NortonLifeLock sells cybersecurity and identity protection for individual consumers through its Norton antivirus and LifeLock brands. The company divested the Symantec enterprise security business to Broadcom in 2019. The Arizona-based company was founded in 1982, went public in 1989, and sells its solutions worldwide.

Contact
60 E. Rio Salado Parkway, Suite 1000
Tempe, AZ, 85281
T +1 650 527-8000
Sector Technology
Industry Software - Infrastructure
Most Recent Earnings Mar 31, 2021
Fiscal Year End Apr 2, 2022
Stock Type Slow Growth
Employees 2,800

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