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Gen Digital (NASDAQ:GEN) rose almost 5% premarket on Tuesday after Morgan Stanley upgraded the cybersecurity company for se
The bank bumped its rating to Overweight from Equalweight saying the shares are undervalued.
PC demand is improving, which should lead to stability while margins are expanding with cost synergies derived from previous acquisitions. Paying down debt is also helping improve the company’s capital structure, analysts led by Hamza Fodderwala wrote in a note.
Morgan Stanley raised its price target on Gen Digital (GEN) to $26 from $23.
Last week, Bank of America started coverage on Gen Digital (GEN) with a Buy and a $25 price target. The bank said the consumer cyber safety market carries large, under-appreciated growth opportunities, with Gen Digital (GEN) addressing a more than $20B possible market. The company has over 435M freemium users and the analysts see large cross-sell and upsell opportunities, plus international expansion potential.
The stock has a BUY rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Seeking Alpha’s quant system, which consistently beats the market, rates the stock a HOLD.
Shares of Gen Digital (GEN) are down nearly 4% year-to-date.