Update shared on 07 Nov 2025
Analysts have raised their price target for Gen Digital to $32 from $25, citing a more favorable outlook. They also noted the need for additional evidence of successful cross-selling within its security and MoneyLion-related offerings.
Analyst Commentary
Analyst perspectives on Gen Digital's outlook offer both optimism and caution, especially in light of the recent price target increase. The following summarizes the key bullish and bearish takeaways:
Bullish Takeaways
- The raised price target reflects growing confidence in Gen Digital’s potential for value appreciation.
- Bullish analysts see the ongoing re-rating of shares as justified, provided the company demonstrates sustained earnings growth.
- There is optimism that successful cross-selling within the security and MoneyLion-related segments could drive stronger revenues.
- The company's ability to expand its core offerings and leverage customer relationships is viewed as a positive signal for long-term growth.
Bearish Takeaways
- Bearish analysts remain cautious, citing the need for clearer proof that cross-sell initiatives are generating tangible results.
- There is hesitancy around the sustainability of a higher valuation without more consistent execution across both core and new product lines.
- Questions persist regarding the pace at which the company can translate new opportunities into measurable financial performance.
- Concerns linger about competitive pressures and the potential for uneven progress as the company integrates MoneyLion-related services.
What's in the News
- Norton has expanded its AI-powered Scam Protection globally across all Norton 360 and mobile plans, introducing features such as Deepfake Protection for YouTube and Facebook, Safe Web for advanced online scam defense, and Genie AI-powered instant scam guidance. The enhanced premium tier, Norton Scam Protection Pro, now includes Safe Email and Safe Call for broader coverage. (Key Developments)
- Norton Small Business offerings now include new Dark Web Monitoring and Social Media Monitoring features, providing business-specific alerts for data breaches and social media threats. The expansion aims to address a reported 20% rise in data breach attacks against small businesses and a 50% surge in overall breach attacks in 2025. (Key Developments)
- Gen Digital has completed the repurchase of 16 million shares for $411.05 million as part of its ongoing buyback program, most recently buying back 5 million shares between March and July 2025. (Key Developments)
Valuation Changes
- Fair Value: Remains unchanged at $33.74 per share, indicating no significant adjustment to overall valuation estimates.
- Discount Rate: Has risen slightly from 9.98% to 10.08%, reflecting a marginal increase in perceived risk or return expectations.
- Revenue Growth: Remains essentially flat at 7.52%, indicating stable growth projections for the company.
- Net Profit Margin: Unchanged at 23.47%, suggesting consistent expectations for profitability.
- Future P/E: Has increased slightly from 22.35x to 22.41x, signifying a modest upward revision in projected valuation multiples.
Disclaimer
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