Bank of America Securities analyst Tomer Zilberman reiterated a Buy rating on Gen Digital today and set a price target of $33.00.
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Tomer Zilberman has given his Buy rating due to a combination of factors that highlight Gen Digital’s promising growth trajectory. The company reported a 25% revenue growth in the second quarter, surpassing market expectations, largely driven by the impressive performance of MoneyLion, which saw a 50% year-over-year increase. This strong performance from MoneyLion suggests a conservative outlook in the company’s growth guidance, which is projected at 8-9% for the fiscal year 2026, with potential for even higher growth.
Additionally, while the core cyber safety segment experienced a modest 3% growth, there was a notable increase in bookings and customer additions, indicating potential for accelerated growth in the near future. The operating margins remained robust at 51.1%, aligning with market expectations, and the company is expected to improve margins further as MoneyLion expands. Despite limited capital allocation this quarter, the company is anticipated to increase share repurchases, enhancing shareholder value. These factors collectively underpin Zilberman’s confidence in Gen Digital’s stock, justifying the Buy rating and a price objective of $33.
Zilberman covers the Technology sector, focusing on stocks such as Okta, Gen Digital, and Motorola Solutions. According to TipRanks, Zilberman has an average return of 14.6% and a 66.67% success rate on recommended stocks.