Recession Stalwart Could Double, IT Vendor Analyst Says After CEO Meeting

Needham analyst Ryan MacDonald reiterated a Buy rating on Verint Systems Inc VRNT and a $61 price target.
The re-rating followed his recent investor meetings with company CEO Dan Bodner.
Unsurprisingly, the primary topic of discussion was Verint's ability to weather the deteriorating macro environment, mainly as VRNT is one of the few companies to have provided a preliminary outlook for FY24 (CY23).
Unlike many of the companies he covered, Verint has managed its way through not one but two recessions (2000 and 2008).
While VRNT did not provide an updated outlook, Bodner noted that EMEA has remained surprisingly strong on a CC basis, with the company boasting a healthy pipeline and coverage.
In the event of a deep recession, VRNT noted it has multiple levers to drive margin expansion while also boasting a healthy balance sheet capable of returning value to shareholders via buyback if necessary.
Price Action: VRNT shares traded higher by 0.58% at $34.03 on the last check Friday.

Momentum19.18

Growth35.13

Quality69.23

Value28.60

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