B.Riley initiates Gen Digital stock with Buy rating on fintech expansion

Investing.com - B.Riley initiated coverage on Gen Digital Inc (NASDAQ:GEN) with a Buy rating and a $46.00 price target on Monday. The company, with a market capitalization of $17.79 billion, has maintained a robust gross margin of 80.28% and currently trades at a P/E ratio of 28.57.

The research firm views Gen Digital as a consumer-facing SaaS and fintech platform operating brands including Norton, Avast, LifeLock, and MoneyLion that help consumers manage their digital and financial lives. According to InvestingPro, the company maintains a "GOOD" overall financial health score, with annual revenue of $3.93 billion.

B.Riley highlighted Gen Digital’s unique position in providing comprehensive cybersecurity protection and trust-based services with a two-sided fintech marketplace.

The firm pointed to Gen Digital’s April 2025 acquisition of MoneyLion as a catalyst expected to accelerate revenue and EPS growth, representing a fundamental step-change in the company’s long-term growth trajectory.

Prior to the MoneyLion acquisition, B.Riley noted Gen Digital had delivered steady low-double-digit total shareholder returns through a combination of low- to mid-single-digit revenue growth, margin improvements, debt reduction, share repurchases, and dividends.

In other recent news, Gen Digital reported strong financial results for Q4 2025, with revenue climbing to $1.01 billion, a 5% increase from the previous year. The company also achieved a record non-GAAP EPS of $2.22, reflecting a growth of 14-15% year-over-year. Gen Digital’s direct customer base expanded by 1.3 million, reaching a total of 40.4 million. The company has provided FY2026 revenue guidance of $4.7-4.8 billion, anticipating a 6-8% pro forma growth. Additionally, Gen Digital has recently completed the acquisition of MoneyLion, which is expected to enhance their financial wellness offerings. Analysts from firms like Wells Fargo (NYSE:WFC) and Barclays (LON:BARC) have shown interest in the company’s strategic direction, particularly in the integration of MoneyLion. Gen Digital plans to leverage MoneyLion’s capabilities to expand its financial wellness features and improve operational margins. The company remains focused on its cyber safety and trust-based solutions, aiming for continued growth in these areas.

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