GEN Stock Forecast & Price Target

Gen Digital has demonstrated a consistent increase in direct customers for six consecutive quarters, indicating strong demand for its cybersecurity offerings. The company anticipates sustainable organic revenue growth in the mid-single digits and expects operating margins to exceed 60%, driving projected non-GAAP EPS growth of 12–15% over the next three years. Additionally, factors such as further de-leveraging and possible improvements in interest rates are expected to positively impact earnings per share going forward.

The negative outlook on Gen Digital's stock is primarily driven by anticipated earnings per share (EPS) estimates that are expected to decrease by 500 basis points, with the downside scenario projecting an EPS of $2.28 to $2.29 for CY/25. This projection is compounded by concerns over increased customer churn, integration risks associated with the acquisition of Avast, and rising debt expenses, all of which pose threats to short-term EPS synergies. Furthermore, recent contractions in peer group multiples suggest that the stock may face a lower valuation multiple due to underperformance against prior estimates.