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Research Alert: CFRA Upgrades Rating On Shares Of Gen Digital Inc. To Buy From Hold

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our target price from $22 to $26 on a forward P/E of 9x our FY 27 EPS view of $2.91, below its three year average. We raise our FY 26 non-GAAP EPS to $2.91 from $2.84 and initiate our FY 27 EPS estimate at $3.41. GEN reported strong FY 26 results, with revenue of $5.0B (+27% Y/Y, +9% pro forma) due to strength across both segments, and Q4 revenue reached $1.28B (+27% Y/Y, +9% pro forma). The Cyber Safety Platform segment delivered $3.34B in annual revenue (+5% Y/Y), while Trust-Based Solutions revenue more than doubled to $1.66B (+119% Y/Y, +23% pro forma), with MoneyLion approaching $1B in annual revenue. Our upgrade reflects GEN's execution and growth potential as it pursues financial wellness and AI opportunities. We note encouraging engagement metrics, cross-sell synergies, and AI-powered tools and recommendations that can further unlock monetization for the firm. Early deleveraging and strong cash flow generation increases the likelihood of more shareholder friendly initiatives.

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