Research Alert: CFRA Upgrades Rating On Shares Of Gen Digital Inc. To Buy From Hold
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 (Mar.) EPS view, below its three year average. We raise our FY 27 non-GAAP EPS to $2.91 from $2.84 and initiate our FY 28 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.