- Cognyte is a cyber intelligence platform that was recently carved out of Verint. It provides solutions to stop cyber-attacks and security threats.
- As a standalone business, Cognyte is expected to witness gradual revenue growth as it scales its software segment.
- Cognyte is also profitable. It has recorded a steady gross margin expansion in recent quarters. It also has ample liquidity in addition to the expected earnings from operations.
- Cognyte is conservatively valued relative to the potential in the security analytics space (this represents an expanding TAM of $30B).
- I have a price target of $37. This implies a modest revenue multiple of 6x FY'21 sales.
For further details see:
Cognyte Software: The Value Investor's Palantir