NEW YORK (TheStreet) -- Verint (VRNT) stock has been upgraded to "outperform" from "neutral" with a $57 price target, Credit Suisse said Thursday. The firm said the company should continue to exceed guidance in the coming quarters.
Separately, TheStreet Ratings team rates VERINT SYSTEMS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate VERINT SYSTEMS INC (VRNT) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- VRNT's revenue growth has slightly outpaced the industry average of 7.5%. Since the same quarter one year prior, revenues rose by 11.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, VRNT's share price has jumped by 37.25%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- Net operating cash flow has slightly increased to $63.27 million or 8.60% when compared to the same quarter last year. Despite an increase in cash flow, VERINT SYSTEMS INC's average is still marginally south of the industry average growth rate of 10.35%.
- VERINT SYSTEMS INC's earnings per share declined by 16.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VERINT SYSTEMS INC increased its bottom line by earning $0.99 versus $0.92 in the prior year. This year, the market expects an improvement in earnings ($3.30 versus $0.99).
- You can view the full analysis from the report here: VRNT Ratings Report