Verisign, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Ygal Arounian from Citi maintained a Buy rating on the stock and has a $337.00 price target.
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Ygal Arounian has given his Buy rating due to a combination of factors, primarily focusing on the positive trends in Verisign’s domain growth. The company has experienced an eighth consecutive month of month-over-month increases in total domains, with a notable acceleration in year-over-year growth driven by the .com domain. This growth is supported by strong fundamentals and effective marketing strategies that have enhanced customer acquisition across various geographies.
Moreover, the recent pullback in Verisign’s share price following the Berkshire secondary offering is seen as an overreaction, presenting a buying opportunity given the company’s robust and improving fundamentals. The moderation in the decline of .net domains also suggests potential upside to the company’s guidance, further reinforcing the positive outlook. Overall, these factors contribute to a favorable environment for Verisign, justifying the Buy rating.