Wall Street Analysts Jump On Board Lifelock

• Lifelock Inc (NYSE: LOCK) shares are down 31 percent year-to-date, despite spiking 52 percent since July 30.
• Canaccord Genuity’s David Hynes Jr maintained a Buy rating on the company, while raising the price target from $14 to $17.
• The proposed settlement with the FTC is positive and removes the uncertainty associated with Lifelock’s business, Hynes mentioned.

Lifelock’s shares surged more than 40 percent in after-hours trading on news of an ostensibly favorable FTC settlement. The company announced that it had reached an agreement with the staff of the FTC and the representatives of a national class of consumers to resolve any outstanding litigation.

Analyst David Hynes pointed out, however, that the agreement needs to be approved by the FTC Commission and the court.

“With the obvious regulatory risk now largely behind the firm, we’re pleased to be able to take off our greenhorn lawyer hat and to start assessing fundamentals,” Hynes wrote, while adding that the proposed settlement does not require Lifelock to change any of its current products, information security practices or marketing and advertising efforts.

Hynes views the prospective settlement favorably and mentioned that the ultimate financial obligation is expected to come in slightly above the company’s expected range of $20-$100 million. He added that the settlement reduces the uncertainty around Lifelock’s business.

The $13 million acquisition of data processing company BitYota during the latest quarter is expected to help Lifelock build new member services and differentiate it as a product-driven company.