Verint Systems Positioned as Top 2025 Pick at Needham

Needham analysts reiterated a Buy rating on Verint Systems (NASDAQ:VRNT) with a $40 price target, naming it the firm’s top pick for 2025 and adding it to the Needham Conviction list. The recommendation highlights several catalysts expected to drive the company's performance in the coming year.

After two challenging years of reduced contact center spending following a COVID-era surge, the market is poised for recovery in 2025. According to the analysts, Verint stands out with its strong positioning in serving enterprises favoring hybrid cloud contact center environments, a significant segment of the market. This capability aligns with evolving customer preferences and positions the company to capture demand as spending rebounds.

Additionally, Verint’s ability to offset potential declines in traditional workforce optimization (WFO) seat-based revenues with growth in AI bot applications adds resilience to its business model. Concerns about near-term reductions in contact center seats, often cited by bears, are seen as overstated, given Verint’s diversified revenue streams.

With consistent low double-digit ARR growth, substantial share buybacks, and increasing free cash flow, the analysts believe Verint presents a compelling case for attracting new investors in 2025.