Analyst Ygal Arounian from Citi maintained a Buy rating on Verisign (VRSN – Research Report) and increased the price target to $288.00 from $260.00.
Ygal Arounian has given his Buy rating due to a combination of factors that highlight Verisign’s strong market position and potential for growth. The analyst has increased the domain name estimates for the company, reflecting an unexpected rise in domain growth, which is projected to continue throughout the fiscal year 2025. This growth positions Verisign as a defensive stock with minimal direct tariff exposure, suggesting that the recent softer trends were cyclical rather than structural.
Additionally, Arounian has adjusted the target price for Verisign’s stock to $288, up from $260, based on revised valuation multiples. This adjustment reflects Verisign’s premium over the S&P 500, which is justified by the company’s restored pricing power and defensive nature. The analyst also points out key areas to monitor in the upcoming earnings report, such as potential revisions to domain name base guidance and the impact of marketing programs on domain trends, which could further influence the stock’s performance.