Verint Systems Downgraded to Hold by Needham

Verint Systems has been downgraded to a Hold rating by Needham analyst Joshua Reilly, with a price target from the company. Reilly covers the Technology sector, with a success rate of 46.54% on recommended stocks. Verint Systems also received a Hold from TD Cowen's Shaul Eyal, but a Buy rating from Wedbush. The company's market cap is $1.23B and P/E ratio is 26.36.

Verint Systems Inc. (NASDAQ: VRNT), a provider of video and data surveillance solutions, has recently faced a series of downgrades in analyst ratings following its acquisition agreement with private equity firm Thoma Bravo. The company's stock has been downgraded to a Hold rating by Needham analyst Joshua Reilly, who covers the Technology sector. Reilly's rating and price target reflect the pending acquisition, which has also been echoed by TD Cowen analyst Shaul Eyal [2]. However, Verint Systems continues to receive a Buy rating from Wedbush, highlighting differing opinions among analysts.

The acquisition, valued at $2 billion, was announced on Monday and is expected to close by Verint's fiscal 2026 year-end on January 31, 2026. Under the terms of the agreement, Verint shareholders will receive $20.50 per share in cash, which aligns with TD Cowen's new price target for the stock. This acquisition follows earlier reports of Thoma Bravo's interest in Verint, with discussions initially suggesting a potential purchase price of $26 per share. Despite these developments, Evercore ISI has maintained its "In Line" rating on Verint, setting a price target of $23.00, while Rosenblatt has adjusted its price target to $20.50, reflecting the acquisition agreement [2].

Verint's market capitalization stands at $1.23 billion, with a P/E ratio of 26.36. The company's stock has declined over 25% year-to-date, currently trading at $20.23. Analysts have differing views on the fairness of the acquisition price, with some suggesting that the $20.50 per share offer may be underpaying shareholders. Halper Sadeh LLC, an investor rights law firm, is investigating whether the sale is fair to Verint shareholders, encouraging shareholders to contact the firm for more information [1].

The acquisition comes as Verint maintains a FAIR financial health score with strong recent quarterly performance. Despite the downgrades, Verint's management has not commented on the initial reports of discussions, which were deemed speculative by some analysts. These developments have generated significant attention among investors as the acquisition progresses.

References:
[1] https://www.morningstar.com/news/business-wire/20250825203544/vrnt-stock-alert-halper-sadeh-llc-is-investigating-whether-the-sale-of-verint-systems-inc-is-fair-to-shareholders
[2] https://www.investing.com/news/analyst-ratings/verint-systems-stock-rating-downgraded-to-hold-by-td-cowen-after-thoma-bravo-deal-93CH-4209319