Verint Systems (VRNT) PT Raised to $48 at Goldman Sachs

Goldman Sachs raised its price target on Verint Systems (NASDAQ: VRNT) to $48.00 (from $44.00) while maintaining a Buy rating.

Analyst Gabriela Borges comments "We reiterate our Buy rating, as Verint’s report gives us increased visibility into the two pillars of our thesis: 1) Fundamentals in Cyber Intelligence are improving. Verint discussed improvements in the global spending environment and disclosed incremental details on backlog (including new orders worth >$55 mn in addition to the $35 mn order announced in Jan). We see a path to sustainable growth >10% yoy exiting the year, and a to contribution margins in the mid-teens with increased leverage in the model beginning 2HCY17. 2) Strategic options may create shareholder value. Verint’s management explicitly noted the potential for a taxfree split of its two businesses into two publicly traded companies, and will continue to build out their respective scale and management teams. Our FY2018 SOTP valuation remains $48 (21% upside), with the potential for further upside if CI revenue growth and margins improve into FY2019. For context, NICE outperformed the S&P 500 by 28% over 2015-2016 as NICE sold its Security/Cyber Intelligence businesses and used the proceeds to invest in cloud assets."

FY 2017 EPS estimate raised from $2.48 to $2.51, FY 2018 EPS lowered from $2.72 to $2.70, FY 2019 EPS lowered from $3.25 to $3.20

You May Also Be Interested In

• XPeng (XPEV) PT Lowered to $15 at US Tiger Securities
• Palo Alto Networks (PANW) PT Raised to $400 at Benchmark Ahead of Q4 Earnings
• XPeng (XPEV) PT Lowered to $18 at Bernstein SocGen Group