Needham analyst Mike Cikos has maintained their neutral stance on CGNT stock, giving a Hold rating yesterday.
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Mike Cikos has given his Hold rating due to a combination of factors including Cognyte Software’s recent financial performance and market expectations. The company exceeded revenue estimates for the second quarter of fiscal year 2025 and raised its full-year outlook, yet the stock price declined, indicating that investors anticipated stronger growth than what was reported. Despite the positive financial results, such as year-over-year increases in current remaining performance obligations and billings, the modest sequential growth in software and recurring revenue may have tempered investor enthusiasm.
Furthermore, while management has reiterated ambitious targets for fiscal year 2028, including significant revenue and margin goals, the Hold rating reflects a cautious approach as the company works to convert large deal traction into actual revenue. Cikos’s decision to maintain a Hold rating suggests a wait-and-see stance, monitoring how these strategic goals will translate into tangible financial outcomes in the future.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $10.00 price target.