Analyst Ygal Arounian of Citi maintained a Buy rating on Verisign, retaining the price target of $337.00.
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Ygal Arounian has given his Buy rating due to a combination of factors that highlight Verisign’s strong position in the domain market. After attending a domain investing conference, Arounian concluded that changes in parked domain advertising would not negatively impact Verisign, as advertising is not a core component of the domain investing business. Instead, domains are considered valuable digital real estate, primarily monetized through resale. This insight alleviates concerns about potential churn and presents a buying opportunity as Verisign’s shares have been under pressure.
Additionally, Arounian is optimistic about the role of Generative AI (GenAI) in driving domain growth. GenAI is expected to facilitate the creation of online projects and domains, contributing to internet expansion and investor interest. This trend is seen as beneficial not only for Verisign but also for other companies in the domain space. The positive outlook for domain growth, coupled with the current market sentiment dislocation, supports the inclusion of Verisign shares in the US Focus List.
Arounian covers the Communication Services sector, focusing on stocks such as Match Group, Ziff Davis, and Trade Desk. According to TipRanks, Arounian has an average return of 4.9% and a 44.06% success rate on recommended stocks.
In another report released on October 24, Robert W. Baird also maintained a Buy rating on the stock with a $325.00 price target.