Analyst Robert Oliver of Robert W. Baird maintained a Hold rating on Verisign (VRSN – Research Report), with a price target of $215.00.
Robert Oliver assigned a Hold rating to Verisign, largely due to the performance concerns related to the Chinese market and macroeconomic pressures. The company’s domain growth guidance has been revised down to a range of -0.4% to +0.4%, primarily caused by the weaker performance in China. Despite the management’s positive outlook on .web following recent ICANN communication, Oliver expects the stock to remain stagnant due to the pressures from China and the broader economic environment.
However, Oliver sees the company’s valuation as increasingly appealing and believes that any signs of recovery could lead to favorable compares in the second half of 2024. While Verisign’s 3Q’23 results were in line with expectations and the GAAP EBIT margins were higher than anticipated, the company’s lower domain-name growth and the downward revision of its 2023E guidance are likely to have influenced Oliver’s Hold rating. Furthermore, he has reduced the price target for Verisign to $215.
VRSN’s price has also changed moderately for the past six months – from $216.900 to $192.630, which is a -11.19% drop .
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Verisign (VRSN) Company Description:
VeriSign, Inc. provides domain name registry services and Internet infrastructure, which enables Internet navigation for many of the world’s most recognized domain names. It enables the security, stability, and resiliency of key Internet infrastructure and services, including providing root zone maintainer services, operating two of the 13 global Internet root servers, and providing registration services and authoritative resolution for the .com and .net top-level domains, which support the majority of global e-commerce. The company was founded by D. James Bidzos on April 12, 1995 and is headquartered in Reston, VA.
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