Cautious Optimism: Hold Rating on Cognyte Software Amid Ambitious FY28 Targets and Execution Risks

Needham analyst Mike Cikos has maintained their neutral stance on CGNT stock, giving a Hold rating on April 3.

Mike Cikos has given his Hold rating due to a combination of factors related to Cognyte Software’s recent Investor Day announcements. The company outlined ambitious targets for FY28, aiming for a revenue of $500 million, supported by a slight year-over-year growth acceleration and improvements in gross margin and operational leverage.
While these targets are promising, the Hold rating suggests that there may be uncertainties or challenges in achieving these goals, such as the rapidly changing technology landscape and the need to effectively manage increasing data volumes and adversaries. Cikos’s rating reflects a cautious optimism, acknowledging the potential for growth while also considering the risks involved in the execution of Cognyte’s strategic plans.

In another report released on April 3, Evercore ISI also maintained a Hold rating on the stock with a $10.00 price target.