NortonLifeLock Posts Solid Q3 as Consumers Demand Encompassing Digital Security; Maintaining $21 FVE

We are maintaining our $21 fair value estimate for no-moat NortonLifeLock after it reported third-quarter results that matched our expectations, and we view shares as slightly overvalued. While we believe NortonLifeLock is doing a commendable job creating growth with an improving operating margin profile, we remain cautious about the long-term competitive environment in consumer cybersecurity and low barriers to changing vendors. NortonLifeLock's pending acquisition of Avast, which is now expected to close on Feb. 24 instead of the middle of 2022, should help accelerate near-term growth. We expect this will help accelerate NortonLifeLock's international expansion and open up upselling opportunities within Avast's customer base.