Priya Ganapati
"They are growing and doing a good job overall, but Verint's shareholder base was a lot of momentum investors," says Meron. "Once top-line and bottom-line surprises diminished, some of them exited."
Those investors that have remained continue to believe in Verint's attractive business model and the chances that the company could be attractive to private equity. "There are few players in this space, and it is a good growth opportunity," says Katsman. "And we are already seeing consolidation in the segment." Verint's delisting problem is unlikely to put off any suitors, say analysts. "It is a negative factor on the valuation," says Ives. "But if investors believe in the story, and the long-term growth is there, it is attractive. And the numbers are the numbers." But criticism of Verint is generally hard to find among Wall Street analysts, who are reluctant to pull their support for the stock, despite low-liquidity trap for large investors. Verint has three strong-buy ratings, two buy, four hold and just one underperform. On June 13, Deutsche Securities upgraded its rating to a buy and raised its price target for the stock from $32 to $40. Deutsche Securities owns Verint shares and has an investment banking relationship with the company; RBC Capital and Friedman Billings do not. In its latest quarterly report on June 11, Verint offered guidance for the upcoming quarter -- the first time it has done so in more than a year. It could be a sign that the company is turning a corner, say analysts. Katsman hopes Verint will return to the Nasdaq later this year. In the black hole of delisted companies, hope is the only thing that keeps shareholders going.
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