UPDATE: Credit Suisse Downgrades Verisign As Risk/Reward Is Biased To Downside

Courtesy of Benzinga.

In a report published Monday, Credit Suisse analyst Philip Winslow downgraded the rating on Verisign, Inc. (NASDAQ: VRSN) from Neutral to Underperform, but reiterated the $47.50 price target.

In the report, Credit Suisse noted, “We believe the risk/reward from VeriSign’s current share price, which equates to a NTM EV/UFCF multiple of 13.1 (versus our forecasted 5-year CAGRs for operating profit and EPS of 5.0% and 8.9%, respectively), is biased to the downside given (1) near-term risk to domain name growth and (2) our expectation for slowing operating profit and EPS growth relative to valuation. Therefore, we are lowering our rating on VeriSign to Underperform.”

Verisign closed on Friday at $56.81.

Posted-In: Credit Suisse Philip WinslowAnalyst Color Downgrades Analyst Ratings