Oppenheimer Cuts Price Target on Verint Systems (VRNT) to $49 as Headwinds Persist

Oppenheimer maintained an Outperform rating on Verint Systems (NASDAQ: VRNT), and cut the price target to $49.00 (from $60.00), following the company's 4Q earnings report. VRNT reported EPS of $0.90, missing the consensus estimate of $1.16. VRNT cited two examples of emerging markets Security headwinds: one in which currency devaluation reduced the US dollar value realized by VRNT and another in which macro challenges prompted an emerging markets customer to reduce the size of a purchase.

Analyst Shaul Eyal commented, "We are lowering our price target on VRNT to $49 from $60 while maintaining our Outperform following disappointing 4Q15 (Jan '16) results. VRNT posted $0.90/ $282M of EPS/revenue, significantly below the consensus $1.16/$319M view; FX trimmed revenue by $40M. Enterprise grew; however, security declined, driven by macro challenges in emerging markets. Encouragingly, VRNT has initiated a $150M, two-year buyback program. The company believes it has largely completed the optimization of its Enterprise go-to-market strategy to address elongated deal closings that it experienced last year. Looking ahead, VRNT expects FY16 revenue and EPS to be flat with FY15's, with growth from Enterprise offset by a decline in security. Maintain Outperform as after market valuation is nearing trough levels."

For an analyst ratings summary and ratings history on Verint Systems click here. For more ratings news on Verint Systems click here.

Shares of Verint Systems closed at $35.19 yesterday.

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