McAfee's fourth-quarter preannouncement had a bark that may ultimately prove to be worse than its bite. With some time to digest and the stock already trading at a significantly discounted valuation of just 8 times enterprise value-to-adjusted free cash flow, we see room for recovery.

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We are maintaining our 'in-line' rating on the stock, but our key message to investors would be not to panic given that the bookings number was not bad and should provide increased support to revenue estimates in 2006.

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