By Dhirendra Tripathi

Investing.com – NortonLifeLock (NASDAQ:) stock traded 4.5% lower Tuesday after Morgan Stanley (NYSE:) downgraded it to ‘equal-weight’ with a target of $28.

The stock has traded at a low of $26.47 so far in the session that’s still underway.

According to StreetInsider, the brokerage sees “limited catalysts” for the cybersecurity company.

“Slowing topline and macro suggest downside risk to FY23 consensus revenue estimates, while NortonLifeLock faces an uncertain regulatory path for closing the proposed Avast transaction,” analyst Hamza Fodderwala wrote in a note.

Earlier this month, Britain’s anti-trust regulator said the company’s proposed $8.6 billion purchase of Avast needed a deeper probe owing to competition concerns.

The Competition and Markets Authority stated that the agreement could result in British customers being offered a less favorable deal on security software.

According to a Reuters Report earlier, the CMA’s initial findings were based on an investigation. The regulator asked companies for proposals to address its concerns, or to face an in-depth investigation.

NortonLifeLock stated that it had no plans to offer any solutions. It called CMA’s decision “surprising.”

Avast shareholders would receive a mixture of cash and new shares under the August deal. NortonLifeLock had expected that the merger would lead to cost savings of $280million.

If this deal is approved, it will provide services to more than 500,000,000 users and 40 million of its direct customers.