NEW YORK—A Robert W. Baird analyst upgraded shares of VeriSign Inc. on Wednesday, saying he is confident the company will attract talented leadership following the departure of its top management.
Analyst Steven Ashley said in a client note Wednesday that last week's exit of the company's chief executive and April's departure of its chief financial officer prompted a sell-off that creates an "attractive opportunity" to buy.
Shares of VeriSign have declined more than 11.7 percent since July 2, the day before it announced CEO William Roper resigned. On Tuesday, the stock closed at $32.85.
VeriSign, which provides some of the Internet's core services, is now operating under an interim CEO and CFO. However, "the positions are highly coveted and will attract talented candidates," Ashley said.
He added the company offers a unique business model whose growth is tied directly to global growth in the Internet.
Ashley raised his rating on VeriSign to "Outperform" from "Neutral." He left his $42 price target unchanged.
