Barclays Reiterates Equalweight Rating on Gen Digital Inc (GEN)

Barclays analyst Saket Kalia reiterated an Equalweight rating and $28.00 price target on Gen Digital Inc (NASDAQ: GEN).

The analyst comments "Four points into GEN's fiscal Q2: (1) we model ~209K user adds since the summer is seasonally slower, and remember the users added 2Q last year are up for renewal this 2Q, which could mean higher unit churn (not higher churn %) as retention on first year renewals is lower than the overall average; (2) declining rates are indirectly moving FX to be more favorable and thus positively impact ARPU, and of course declining rates bode well for interest expense with a lower SOFR curve and GEN's recent refinancing; (3) we recently introduced a bookings forecast to our model, and delve into the differences between bookings vs billings below; (4) we note that web traffic grew y/y for both Norton (+7% y/y) and Avast (+8% growth q/q), promotional activity for Labor Day ran in late August/early September, and Bloomberg credit card data indicates y/y growth for US revenue with what could be a slight decel vs Q1."

For an analyst ratings summary and ratings history on Gen Digital Inc click here. For more ratings news on Gen Digital Inc click here.

Shares of Gen Digital Inc closed at $26.97 yesterday.

You May Also Be Interested In

• Goldman Sachs (GS) Reiterated at Market Perform by Citizens on Constructive Backdrop
• Barclays Upgrades Keurig Dr Pepper (KDP) to Overweight
• BAE Systems Plc (BA:LN) (BAESY) New Top Pick in EU Defence at Morgan Stanley