(VRSN) VeriSign Incorporated – Bull of the Day

VeriSign, Inc. (VRSN) recently reported earnings of $0.35 per share in the third quarter of 2011, beating the Zacks Consensus Estimate of $0.33. In the past few years, VeriSign has considerably streamlined its business to focus on providing, reliable and secure Internet infrastructure services. The disposal of non-core businesses boosted margins while the buyback of shares helped the bottom line.

The company at present has a new management team. Additionally, we think increased domain fees and ICANN’s plan to increase the number of generic domain names should positively impact its results. Earnings estimates have increased recently.

Hence, we upgrade our recommendation to Outperform from Neutral. We set a target price of $40.00, which is derived by applying a target P/E multiple of 30.5x to our 2011 EPS estimate.

VERISIGN INC (VRSN): Free Stock Analysis Report

Zacks Investment Research

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