Analyst Note| Brian Colello, CPA |
Wide-moat VeriSign reported strong fourth-quarter results, as revenue fell in line with FactSet consensus estimates and EPS topped both consensus and our expectations. Throughout 2020, VeriSign benefited from heightened demand as businesses and individuals relied on online services, while the company continued to do a good job securing its Internet infrastructure. We remain impressed with management’s ability to maintain the integrity and reliability of VeriSign’s Internet infrastructure amid the increased demand. In addition to our model roll, given the company’s ever-expanding domain name base, or DNB, strong renewal rates, and increased investments in core operations, we are raising our fair value estimate to $173 from $154. We continue to view shares as slightly overvalued.