Verint faces 60-70 percent downside risk to approximately $17 to $25 per share due to what Spruce Point said is the market's misunderstanding of the company's flat-to-negative organic sales growth.
The metric is "obfuscated by frequent M&A, a 'beat-and-raise cookie jar' and aggressive accounting measures," according to Spruce Point's announcement.
Verint responded to the short report Thursday with a statement that called it "self-serving" and said it's "inaccurate ... deliberately misleading and is intended to destroy shareholder value."
Spruce Point said the market is valuing Verint like a high-growth SaaS company when it is in fact a slow-growing call center software provider.
Verint shares were down more than 10 percent at $55 at the time of publication Thursday.
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