Credit Suisse cut shares of Verisign (NASDAQ: VRSN) from an outperform rating to a neutral rating in a research report sent to investors on Wednesday morning. The firm currently has $42.50 price target on the stock.
“The recent decision on the .com renewal agreement to maintain .com pricing at $7.85 with no price increases in the next six years has largely capped upside to revenue estimates to growth in the installed base of .com and .net domain names in the near term. Although we expect VeriSign to continue to steadily improve margins with consistent revenue growth driven by net additions to the .com and .net registries, we view the incremental revenue growth catalysts of new gTLDs and the company’s IP licensing strategy as unlikely to meaningfully contribute to revenue until 2014 at the earliest.,” Credit Suisse’s analyst commented.
Shares of Verisign opened at 45.81 on Wednesday. Verisign has a 52 week low of $32.81 and a 52 week high of $50.15. The stock’s 50-day moving average is currently $43.21. The company has a market cap of $7.027 billion and a P/E ratio of 23.42.
VRSN has been the subject of a number of other recent research reports. Analysts at Zacks upgraded shares of Verisign from a neutral rating to an outperform rating in a research note to investors on Friday, February 22nd. They now have a $54.00 price target on the stock. Separately, analysts at Topeka Capital Markets raised their price target on shares of Verisign to $52.00 in a research note to investors on Tuesday, February 5th.
Three analysts have rated the stock with a buy rating, twelve have given a hold rating, and one has assigned an underweight rating to the company. Verisign has a consensus rating of hold and an average price target of $41.69.
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