Update shared on03 Sep 2025
Fair value Increased 2.72%Analysts have raised Gen Digital's price target to $34.64, citing improved fiscal 2026 revenue guidance, anticipated cross-selling benefits from the MoneyLion acquisition, and sector-wide valuation adjustments, while acknowledging that further evidence of synergy realization is needed.
Analyst Commentary
- Raised fiscal 2026 revenue guidance by $100M after including combined Gen and MoneyLion results.
- Positive expectations for cross-selling opportunities between core security and newly acquired MoneyLion offerings, though some analysts remain cautious until further proof emerges.
- Adjusted targets across the security, design, and vertical SaaS sectors due to earnings preview and broader sector trends.
- Noted Gen Digital's unique consumer-facing software-as-a-service platform with a diversified brand portfolio, including Norton, Avast, and LifeLock, supporting continued growth.
- MoneyLion acquisition viewed as a potential catalyst for a fundamental change in long-term growth trajectory.
What's in the News
- Gen Digital raised its fiscal 2026 revenue guidance to $4.8–$4.9 billion, reflecting anticipated year-over-year growth of 22–25% (Key Developments, 2025-08-07).
- The company has repurchased 16 million shares since May 2024 for $411.05 million, recently completing a tranche of 5 million shares for $139.3 million (Key Developments, 2025-08-13).
- Norton, a Gen Digital brand, launched AI-powered deepfake protection in the Norton Genie AI Assistant, expanding its cybersecurity offering to counter AI-generated audio and video scams; initial rollout covers select geographies and platforms with broader expansion planned (Key Developments, 2025-07-31).
- Gen Digital has been added as a constituent to multiple Russell Growth indexes, including the Russell 1000, 2500, 3000, Midcap, and Growth benchmarks, which may boost institutional ownership and market visibility (Key Developments, 2025-06-28/30).
- Industry news highlights increased prominence of cybersecurity firms including Gen Digital following high-profile cyberattacks, underscoring sector relevance amid global tensions (Bloomberg/IRIB, 2025-06-17).
Valuation Changes
Summary of Valuation Changes for Gen Digital
- The Consensus Analyst Price Target has risen slightly from $33.72 to $34.64.
- The Future P/E for Gen Digital has risen slightly from 22.28x to 22.85x.
- The Consensus Revenue Growth forecasts for Gen Digital remained effectively unchanged, moving only marginally from 7.6% per annum to 7.7% per annum.
Disclaimer
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