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Fly News Breaks for July 22, 2015
LOCK
Jul 22, 2015 | 07:43 EDT
Canaccord said that two FTC tangles within five years is never a good thing for a stock price, but the firm believes the situation for LifeLock is redeemable. The firm noted the company has reserved $20M for a potential fine as the first run-in with the FTC resulted in 2-2.5% of the preceding five year's revenues. If that figure is applied again, it would imply a $15-$20M fine, the firm said, but noted the fine must be higher as the company went to court to fight the gap between the two sides. Canaccord maintained its Buy rating and $23 price target on LifeLock shares, which it cautioned will remain volatile as investors assess the cross-winds affecting the company.
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