S&P Capital IQ Downgrades Verisign from STRONG BUY to HOLD

October 29 00:00 2011

New York, October 29 (RainbowNewsLine.com) – Analyst Scott Kessler of S&P Capital IQ downgrades the rating of Verisign (NASDAQ: VRSN) from STRONG BUY to HOLD, while raising the estimates for the company. The 12-month target price is set to $34.

Analyst Scott Kessler, in a research note publishes yesterday mentions that the company has reported its Q3 EPS ahead of the estimate and the consensus. Verisign’s revenues grew 14%, driven by the growth in key domain name areas which continues to be healthy, the analyst says. As margins are expanding followed by the notable transitions in recent times, the EPS estimate for 2012 has been raised from $1.60 to $1.70. The downgrade in rating is based on valuation, the analyst adds.