Lifelock Inc (LOCK)’s Stock Is Undervalued: Pacific Crest


After Lifelock Inc(NYSE:LOCK) posted a higher than expected increase in the number of members and Pacific Crest considers the company’s conversion is getting better. The analyst believes that the company’s high number of gross additions will be able to raise its market cap by 15%-20%. Therefore Pac Crest has a $20 price target and and ‘Outperform’ rating on the stock.

Yesterday, the company reported better-than-expected financial results for the first quarter; the company also reported mixed guidance for the next quarter and guidance for fiscal 2014 in line with the estimates.

Lifelock, which is a provider of proactive identity theft protection services reported a first-quarter net loss of $5.2 million or $0.06 per share, compared with a loss of $4.1 million or $0.05 per share in the same period last year. Moreover, the adjusted net loss amounted to $1 million, or $0.01  per share, versus an adjusted net income of $0.6 million or $0.01 per share reported a year ago. The Capital IQ analyst estimate is for $0.02 loss per share.

The revenue went up 31% on the year to $107.6 million, while the analysts were expecting revenue of $105.59 million. The company now forecasts second quarter revenue in the range $113 million – $114 million, while the consensus stands at $112.59 million; the adjusted Earnings Per Share (EPS) are expected in the range between $0.03 and $0.04, versus the Street’s outlook of $0.06.

Lifelock Inc(NYSE:LOCK) has a 50-day moving average of $17.32, while the 200-day average stands at $17.59.  For the current quarter, the consensus EPS amounts to $0.45.


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