Market Overview

UPDATE: Credit Suisse Reinstates Coverage on Verint Systems on Acquisition of KANA Software

Related VRNT
Oppenheimer Analysts Release 28 Best Ideas List
Ultimate Software (ULTI) Down to Strong Sell on Tepid View

In a report published Wednesday, Credit Suisse analyst Michael Nemeroff reinstated coverage on Verint Systems (NASDAQ: VRNT) with a Neutral rating and $49.00 price target, up from $40.00.

In the report, Credit Suisse noted, “VRNT announced it has completed the acquisition of privately-held KANA Software, a provider of on-premise/cloud customer experience management solutions. VRNT paid $514M ($100M from existing cash and $414M of debt from an incremental term loan and revolving credit facilities), which represents 3.5x C2014 revenue, or ~12.0x EBITDA. We forecast the transaction will be accretive to F2015 results (CS estimates $0.29). Management believes the acquisition is highly strategic and that KANA's customer service modules will enhance VRNT's product offerings and allow the combined company to offer new/existing customers a holistic suite strategy, from a single vendor, to transform customer engagement across multiple channels. Based on the expected revenue and non-GAAP EBITDA contributions from KANA ($140-150M and $40-45M, respectively for C2014), we increase our F2015 revenue/EPS estimates to $1,116M/$3.30 from $982M/ $3.01 with a new $49 TP.”

Verint Systems closed on Tuesday at $44.14.

Latest Ratings for VRNT

Mar 2017Imperial CapitalDowngradesOutperformIn-Line
Feb 2017Goldman SachsInitiates Coverage OnBuy
Sep 2016Imperial CapitalMaintainsOutperform

View More Analyst Ratings for VRNT
View the Latest Analyst Ratings

Posted-In: Credit Suisse Michael NemeroffAnalyst Color Initiation Analyst Ratings


Related Articles (VRNT)

View Comments and Join the Discussion!