Morgan Stanley analyst Hamza Fodderwala upgraded Gen Digital to Overweight from Equal Weight with a price target of $26, up from $23. The analyst expects sales stability for Gen as PC demand improves as well as margin expansion from acquisition cost synergies. The company also has an improving capital structure from debt paydown, the analyst tells investors in a research note. The firm says this should drive over 10% earnings growth annually through 2025, making the shares undervalued.
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