The Intel-McAfee (MFE) deal could be a starting point for what could be the consolidation of security software industry.

A UBS analyst said if valuation of Symantec (SYMC) remains low, there is an increasing probability that it gets acquired.

"SYMC trades for 1.5x EV/revs, a 50% discount to where a strategic buyer today valued MFE," analyst Brent Thill said in a note to clients.

"If valuation remains near 5-yr lows it increases the probability a strategic buyer (Oracle/IBM/Cisco/HP) acquires SYMC and its meaningful security/storage portfolio, particularly as Intel wasn't the logical MFE acquirer," said Thill, who has upgraded SYMC to "buy" from "neutral."

"Discounting MFE's EV takeout premium by 20%, SYMC could be worth $20/sh to a strategic buyer," Thill added.

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The analyst also said the recent Intel-McAfee deal should benefit Symantec's organic business.

The brokerage, which kept the price target of Symantec at $16, said post Intel deal McAfee would likely become less aggressive on pricing, which the brokerage believes has been an issue. Enterprise customers would increasingly choose SYMC as a safe-haven with MFE's M&A uncertainty.

"M&A distractions could see MFE take their eye off the execution ball. While we don't believe SYMC's go-to-market model is in great shape, today's news should help them in the sales," Thill said.

Shares of Symantec were up 11 cents at $13.48 on Nasdaq in late morning trade.

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