Gen Digital's (GEN) fiscal Q2 setup seems "positive" and its shares remain "interesting" despite volatility following news about a proposed GoDaddy (GDDY) acquisition, with investor concerns increasingly reflected in the valuation, UBS said in a note emailed Thursday.

The company's management reiterated the rigor of its mergers and acquisitions process, UBS noted, highlighting that recent transactions such as MoneyLion have outperformed expectations.

UBS said the focus would be on potential strategic benefits from a GoDaddy transaction through greater exposure to small and medium businesses and possible e-commerce and financial marketplace synergies.

UBS raised its fiscal 2027 estimate to about 10% revenue growth, including roughly 5% cyber safety growth and 21% trust-based solutions growth.

The firm maintained its buy rating on the stock with a $36 price target.

Price: 22.26, Change: +0.23, Percent Change: +1.07