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VeriSign Inc VRSN

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Morningstar’s Analysis

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VeriSign Posts Strong Third Quarter Results; Maintaining $154 FVE; Shares Overvalued

Brian Colello, CPA Sector Director

Analyst Note

| Brian Colello, CPA |

Wide-moat VeriSign reported strong third-quarter results, as both revenue and earnings per share exceeded our expectations. VeriSign benefited from the increased demand for secure Internet infrastructure, as businesses and individuals continue to rely on online services for their daily needs. However, we think this surge is likely just temporary and, as a result, we are maintaining our $154 fair value estimate for VeriSign and continue to view shares as overvalued.

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Company Profile

Business Description

VeriSign is the sole authorized registry for several generic top-level domains, including the widely utilized .com and .net top-level domains. Additionally, the company operates two of the world's 13 root servers that are used to route Internet traffic. In 2018, the firm sold off its security services business, signaling a renewed focus on the core registry business. VeriSign generates about 60% of its sales from the United States.

Contact
12061 Bluemont Way
Reston, VA, 20190
T +1 703 948-3200
Sector Technology
Industry Software - Infrastructure
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type Classic Growth
Employees 872

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