Technology

Analysts Value SecureWorks Higher in Coverage Debut After Quiet Period Expiration

Jon C. Ogg

Published: May 17, 2016 11:40 am

Last Updated: January 13, 2020 7:56 am

SecureWorks Corp. (NASDAQ: SCWX) has now seen its post-IPO quiet period come to an end. The move on Monday ahead of the expiration was up by 10.9% to $13.81, perhaps taking some of the bang out of the waves of analyst calls on Tuesday.

24/7 Wall St. tracked the full coverage here. Most analysts are positive, with Buy, Outperform or Overweight ratings. Most of the targets in those calls with Buy-equivalent ratings range from $16 to $18.

Keep in mind that traditionally Buy or Outperform ratings in S&P 500 and Dow Jones Industrial Average stocks come with upside targets of 8% to 15% on average when most of the larger firms initiate coverage.

SecureWorks is a provider of intelligence-driven information security solutions exclusively focused on protecting clients from cyberattacks. Note that this company was tied to Dell. It has a broad portfolio of information security solutions to organizations of varying size and complexity.

These are the analyst initiations seen so far on Tuesday:

• Buy with a $17 price objective at Merrill Lynch
• Overweight with a $16 target at Barclays
• Neutral at Citigroup
• Neutral with a $14.50 target at Credit Suisse
• Buy with a $17.50 target at Goldman Sachs
• Overweight with an $18 target at JPMorgan
• Overweight with an $18 target at Morgan Stanley
• Overweight with an $18 target at Pac-Crest
• Outperform with a $16 target at RBC Capital Markets
• Buy with an $18 target at Stifel
• Buy with a $17 price target at SunTrust Robinson Humphrey
• Outperform at William Blair

When SecureWorks entered the market, it was with 8 million shares at a price of $145 per share. That was under the expected range of $15.50 to $17.50.

Again, the gain on Monday may have taken away some of the upside here. SecureWorks traded down 1.1% at $13.65 on Tuesday, on less than 760,000 shares approaching the noon hour. Its post-IPO range has been $11.96 to $14.60.