NLOK - NortonLifeLock dips as Morgan Stanley downgrades on 'tougher path ahead'

NortonLifeLock (NASDAQ:NLOK) shares fell early Tuesday after investment firm Morgan Stanley downgraded the software security firm, citing uncertainty. Analyst Hamza Fodderwala lowered the firm's rating to equal weight from overweight, noting that the company is facing slowing top-line growth as it moves further away from COVID-related tailwinds. Additionally, it is facing an "elongated" timeline for its Avast acquisition that is adding additional uncertainty and has resulted in share buybacks being stalled. "Bottom line, the combination of slowing organic growth, uncertain macro and regulatory risk creates a tough near-term setup for [NortonLifeLock]," Fodderwala wrote.  Fodderwala kept the firm's $28 on shares, however. NortonLifeLock (NLOK) shares fell nearly 2% $27.65 in premarket trading. In addition, Fodderwala noted that NortonLifeLock is seeing slowing average revenue per user  growth as it expands further into freemium channels following its Avira acquisition. "While a post-Covid slowdown was likely expected for some time, the pace of that deceleration is

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NortonLifeLock dips as Morgan Stanley downgrades on 'tougher path ahead'