tl;dr
BofA Securities has initiated coverage on Gen Digital (NASDAQ: GEN) with a Buy rating and a $25 price target. The analysts view Gen as an underappreciated software value play within the consumer cyber safety market niche. They believe that Gen's current market share and potential for growth within t...
BofA Securities has initiated coverage on Gen Digital (NASDAQ: GEN) with a Buy rating and a $25 price target. The analysts view Gen as an underappreciated software value play within the consumer cyber safety market niche. They believe that Gen's current market share and potential for growth within the $20B Total Addressable Market indicate significant opportunity. Additionally, the company's large freemium user base creates potential for cross-selling and upselling, along with international expansion opportunities.
Furthermore, the analysts note that Gen Digital carries a strong margin profile and exceptional revenue and cost synergies from the Avast acquisition. They project the company to outperform the current Street estimates for EPS, with additional upside potential. Moreover, despite the saturation of the consumer cyber safety market and competitive pressures from major players, Gen's differentiated, all-in-one platform and margin profile indicate strong potential for future growth and debt reduction, justifying the $25 price target based on 11x FY25E EPS.
More about Gen Digital Inc.
Key Financial Metrics:
Revenue: $12,660,529,000
Earnings per share: $8.86
Dividend yield: 0.5%
Market capitalization: $37,770,000,000
Stock Performance:
Current stock price: $24.4
Price-to-earnings ratio: 5.88
Market Sentiment:
Dividend payout ratio: 0.375
Beta: 0.967
Debt-to-equity ratio: 0.267
More about Microsoft Corporation
Microsoft Corporation is an American multinational technology company producing computer software, consumer electronics, personal computers, and related services. The company is ranked No. 21 in the 2020 Fortune 500 rankings and is considered one of the Big Five companies in the U.S. information technology industry. Financially, Microsoft has a market capitalization of $2,747,483,816,000, a current stock price of $274.33, and a strong price-to-earnings ratio of 35.86. The company's stock performance has been positive, with a 10.31% return on investment and a 29.35% profit margin. Microsoft's market sentiment is also favorable, with a price-to-book ratio of 0.353 and a strong operating margin of 27.2%. Overall, Microsoft is a major player in the technology industry with strong financial metrics, positive stock performance, and favorable market sentiment.