Needham analyst Mike Cikos has maintained their neutral stance on CGNT stock, giving a Hold rating on July 24.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Mike Cikos has given his Hold rating due to a combination of factors influencing Cognyte Software’s current and future performance. The company is undergoing a period of transition, with expectations for software revenue to grow by 10% year-over-year in FY25 and 12% in FY26. However, the revenue mix has been inconsistent, and the percentage of recurring revenue has been decreasing since the first quarter of FY25, which raises concerns about the stability of future earnings.
Additionally, while Cognyte has set ambitious revenue growth targets for FY28, driven by the evolving threat landscape and advancements in AI, the realization of these targets depends on the successful implementation of new products like LUMINAR Threat Intelligence and NEXYTE Decision Intelligence. These innovations are expected to impact results in the near term, but the expansion in the U.S. market is anticipated to be a longer-term driver. As such, Cikos is adopting a cautious approach, opting to wait for more consistent revenue acceleration before considering a more favorable rating.
Cikos covers the Technology sector, focusing on stocks such as Zscaler, Cellebrite DI, and Cognyte Software. According to TipRanks, Cikos has an average return of 13.1% and a 56.48% success rate on recommended stocks.
In another report released on July 24, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $9.50 price target.