Shares of customer engagement solutions provider Verint Systems, Inc. (VRNT) have surged 64.3% over the past year. Driven by double-digit growth in cloud revenue, Verint posted better-than-expected revenue for the third quarter.
Notably, new perpetual license equivalent (PLE) bookings jumped 14% over the prior year. The company received 21 orders, each with a total contract value (TCV) of over $1 million.
Verint was also named a leader in two conversational AI IDC MarketScape vendor assessment reports for providing conversational AI solutions in the customer service arena.
With these positives in mind, let us take a look at the changes in Verint’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, Verint’s top risk category is Finance & Corporate, contributing 37% to the total 38 risks identified.
In its recent quarterly report, the company has changed one key risk factor under the Macro & Political risk category. Compared to a sector average of 9%, Verint’s Macro & Political risk factor is at 16%.
Verint noted the risk posed by the COVID-19 pandemic. The pandemic has led to substantial economic disruption and uncertainty. Additionally, government authorities across the globe have implemented a number of measures to contain and mitigate the effects of COVID-19. (See Insiders’ Hot Stocks on TipRanks)
If Verint’s understanding of the application of government mandates (mandatory vaccination and workplace safety protocols) regarding COVID-19 differs from federal customers’ interpretation, or if its employees do not comply with the mandates, then Verint may experience higher costs, business disruption, and employee attrition.
Furthermore, Verint acknowledged that in the present circumstances it cannot predict the full extent of the impact of COVID-19 on its business and results of operations.
Wall Street’s Take
Consensus on the Street is a Strong Buy based on 4 unanimous Buys for the stock. The average Verint Systems price target of $64.50 implies a potential upside of 26.6%.
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