Update shared on 26 Aug 2025
Fair value Decreased 31%The consensus analyst price target for Verint Systems was revised downward to $25.57 from $29.71 after all analysts updated their targets to reflect the company's pending acquisition by Thoma Bravo for $20.50 per share in cash, despite prior optimism around its AI-driven transformation and recent earnings beat.
Analyst Commentary
- All analysts updated their ratings and price targets to reflect Verint's agreement to be acquired by Thoma Bravo for $20.50 per share in cash.
- Previous bullish sentiment was driven by the company's broad AI portfolio and its competitive advantage in training advanced AI models from a decade of customer interaction data.
- Transformation progress from a traditional security and analytics provider to a leader in AI-powered customer engagement solutions supported prior bullish outlooks.
- A 7% revenue beat and material earnings upside in a recent quarter were attributed to a pull forward of unbundled SaaS deals, though first quarter guidance was below consensus.
- Analysts expressed caution over whether the implied second-half revenue ramp is achievable, given prior misses on unbundled deals and unchanged full-year revenue and earnings guidance.
What's in the News
- Verint was downgraded to Sector Perform from Outperform by RBC Capital, with the price target cut to $20.50 after agreeing to be acquired by Thoma Bravo for $20.50 per share in cash (RBC Capital).
- Needham downgraded Verint to Hold from Buy following the acquisition agreement with Thoma Bravo at $20.50 per share in cash (Needham).
- Thoma Bravo is close to a deal to acquire Verint at a $2B valuation including debt, with an announcement possibly imminent, but no final agreement has been finalized yet (Bloomberg).
- The acquisition would price Verint at $20.50 per share, reflecting the terms of the deal discussed in media reports.
- Multiple analyst downgrades followed the acquisition announcement, signaling limited upside due to the deal price.
Valuation Changes
Summary of Valuation Changes for Verint Systems
- The Consensus Analyst Price Target has significantly fallen from $29.71 to $25.57.
- The Future P/E for Verint Systems has significantly fallen from 12.62x to 10.84x.
- The Discount Rate for Verint Systems remained effectively unchanged, moving only marginally from 9.57% to 9.49%.
Disclaimer
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