Gen Digital Target Raised to $35 at Argus Following Strong Earnings
Argus boosted its price target on Gen Digital to $35 following better-than-expected quarterly results, raised full-year guidance, and ongoing growth across its cybersecurity segments.
Argus lifted its price target on Gen Digital Inc. to $35.00 from $32.00 and maintained a buy rating, according to a report published Wednesday by Benzinga. The updated target implies a 15.90% upside from the previous closing price. The adjustment arrives after the cybersecurity firm delivered strong financial results for its second quarter of fiscal 2027.
On October 28th, Gen Digital reported quarterly revenue of $1.37 billion, up 12.2% year over year and topping analyst expectations of $1.34 billion. Earnings per share reached $0.74, beating consensus projections of $0.72. Non-GAAP diluted EPS rose 19% from the prior year's $0.62. The company also registered a sixth consecutive quarter of double-digit bookings growth, with total bookings expanding 10% to $1.35 billion, while paid customers climbed to 83 million.
Operating performance saw gains across both reporting segments. Cyber Safety revenue rose 5% year over year with an operating margin of 62%, while Trust-Based Solutions revenue surged 26% alongside a 30% margin. Partner channel sales grew 40% to $295 million, accounting for more than 20% of total revenue. Following the performance, management raised its fiscal 2027 outlook, projecting revenue between $5.465 billion and $5.515 billion and non-GAAP EPS between $2.93 and $2.98.
Wall Street sentiment has shown mixed perspectives following the earnings release. MarketBeat reported an overall consensus rating of Hold with an average target price of $31.20, counting two Buy and six Hold ratings. Separately, Yahoo Finance tracked 10 analysts covering the stock with a Moderate Buy consensus consisting of four Strong Buys and six Holds. Recent brokerage actions include Weiss Ratings raising the stock to Buy on November 4th, while Morgan Stanley and Royal Bank of Canada raised their price targets to $34.00 and $27.00, respectively.
Company filings also revealed recent insider activity. Travis Witteveen sold 30,000 shares at an average price of $29.75 on November 2nd, retaining 466,545 shares. Corporate insiders have sold 558,508 shares totaling $16,365,993 over the past 90 days and maintain a 9.70% stake in the business, while institutional investors hold 81.38%.