The average analyst price target for Gen Digital was revised upward, increasing by $1 from $32 to $33. Analysts cited the company's raised fiscal 2026 revenue guidance and emerging benefits from its cross-sell initiatives as key factors in their reassessment.
Analyst Commentary
Recent analyst reports provide key insights into the changing outlook for Gen Digital, reflecting both optimism for growth opportunities and caution regarding execution risk.
Bullish Takeaways- Bullish analysts have noted the upward revisions to revenue guidance, citing the company’s decision to increase fiscal 2026 targets following improved first quarter results.
- The successful integration and early results from cross-sell initiatives, particularly involving MoneyLion offerings, are seen as promising catalysts for future top-line growth.
- Increases to price targets correspond with improved confidence in the company’s core security business and adjacent ventures, which suggests potential for valuation upside.
- Reporting combined results from Gen and MoneyLion is viewed as providing greater transparency and a stronger growth narrative for investors.
- Some bearish analysts remain cautious and highlight the need for further proof that cross-sell strategies will deliver sustained benefits across both legacy and acquired platforms.
- There is hesitancy to upgrade ratings until more concrete execution results are observed, particularly in new product areas.
- Uncertainty persists regarding the durability of recent revenue growth, which prompts a neutral stance from those analysts who are more conservative in their outlook.
What's in the News
- Norton expanded its Small Business offering with new Dark Web Monitoring and Social Media Monitoring features to help small businesses defend against data breaches, account takeovers, and scams. The enhancements provide proactive alerts for business-specific information found on the Dark Web and monitor Facebook and Instagram business profiles for threats. (Key Developments)
- Gen Digital launched AI-powered deepfake protection in the Norton Genie AI Assistant for Norton 360 mobile apps. This early access feature analyzes audio and video content for manipulation, helping detect malicious AI-generated content and providing cyber safety guidance to users. (Key Developments)
- The company completed a tranche of its share buyback program, repurchasing 5,000,000 shares between March and July 2025. This brings the total number of shares repurchased since May 2024 to 16,000,000 for $411.05 million. (Key Developments)
- Gen Digital raised its fiscal 2026 revenue guidance to a range of $4.8 billion to $4.9 billion, reflecting expected year-over-year revenue growth of 22% to 25%. (Key Developments)
Valuation Changes
- Fair Value Estimate has decreased modestly, moving from $34.64 to $33.74.
- Discount Rate has risen slightly, from 9.86% to 9.98%.
- Revenue Growth Assumption has fallen slightly, declining from 7.69% to 7.52%.
- Net Profit Margin estimate has edged up slightly, increasing from 23.36% to 23.47%.
- Future Price-to-Earnings (P/E) Ratio has decreased subtly, moving from 22.87x to 22.35x.
Disclaimer
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