On Thursday, TD Cowen reiterated its Buy rating on shares of Verint Systems (NASDAQ:VRNT), with a steady price target of $36.00. The firm's assessment follows Verint's recent third-quarter financial report for the fiscal year 2025, which showcased robust performance indicators, particularly in areas driven by artificial intelligence (AI).
According to InvestingPro analysis, the company appears undervalued at its current market capitalization of $1.61 billion, with the stock trading at $25.97.
Verint Systems reported a 19% increase in bundled Software (ETR:SOWGn) as a Service (SaaS) growth and a 5% rise in revenue, adjusted for divestitures. The company's impressive gross profit margin of 71.36% and overall revenue growth of 3.03% underscore its operational efficiency.
The company also confirmed that it is on track to meet its full-year 2025 guidance and anticipates concluding the fiscal year on a strong note. This positive outlook is partly attributed to early renewals of unbundled contracts, which surpassed consensus revenue expectations.
TD Cowen's analysis suggests that Verint is well-positioned for sustainable growth, projecting that the company will eventually achieve the "rule-of-40" performance metric. This benchmark refers to a combined achievement of 10% revenue growth and a 30% EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin. The firm's endorsement underlines confidence in Verint's long-term financial health and market position.
The maintained price target of $36.00 reflects the analyst's continued optimism about the company's prospects, particularly as Verint leverages AI to drive growth and efficiency in its offerings. Verint Systems' performance in the third quarter signals a steady trajectory towards these goals, aligning with the positive ratings and expectations from market analysts.
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