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Gen Digital stock rating held at $31 by Jefferies, citing execution risk

Published 10/03/2025, 05:29 AM
Gen Digital stock rating held at $31 by Jefferies, citing execution risk
GEN
-0.28%

Investing.com - Jefferies maintained its Hold rating and $31.00 price target on Gen Digital Inc (NASDAQ:GEN), currently trading at $28.08, according to a research note released Friday. The stock sits within a broader analyst target range of $25 to $46, with InvestingPro data showing the company maintains a "GOOD" overall financial health score.

The firm cited near-term execution risk for the consumer security company, particularly related to its recent expansion into financial wellness services through the acquisition of MoneyLion.

Jefferies believes that while the MoneyLion acquisition presents short-term challenges, it ultimately broadens Gen Digital’s platform and expands cross-selling and upselling opportunities in the long term.

The research firm noted that Gen Digital remains the leading vendor in consumer security, with its recent strategic moves aimed at diversifying its consumer offerings.

Jefferies considers the stock fairly priced at 10 times EV/2026E EBIT, which aligns with Gen Digital’s historical trading average. The stock currently trades at an EV/EBITDA multiple of 13.2x, though InvestingPro analysis suggests slight undervaluation. For deeper insights into Gen Digital’s valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Gen Digital reported impressive financial results for Q1 2025, with a 30% increase in revenue, reaching $1.26 billion. The company also saw a 20% rise in diluted earnings per share, which amounted to $0.64. These gains were significantly driven by the acquisition of MoneyLion and an additional fiscal week. Furthermore, Gen Digital adjusted its full-year revenue guidance upward, now expecting between $4.8 billion and $4.9 billion. These developments highlight the company’s strategic growth initiatives. Investors and analysts are keeping a close watch on Gen Digital’s performance following these announcements.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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