11:31 AM EST, 12/04/2024 (MT Newswires) -- Gen Digital ( GEN ) is "well positioned" to grow in line or above the consensus in consumer cybersecurity market, supported by leading position in identity theft protection and strong brand awareness, UBS said in a note Wednesday.

The firm said it expects Gen to achieve a double-digit compounded annual earnings growth through fiscal 2027, driven by mid-single-digit topline growth guide, stable operating expense control, and "improving" lifetime value of customer acquisition cost, or LTV/CAC, factoring in a "more favorable interest rate environment."

"Near term, we think subscriber growth and partner revenue offer the two biggest levers for growth upside," UBS said. Competition from players like Aura and Nord Security remains a concern, UBS added.

UBS initiated Gen's coverage with a buy rating and $36 price target.

Gen shares were up 2% in recent trading.

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