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Wells Fargo Comments on VeriSign (VRSN) Decline

March 17, 2014 10:57 AM EDT
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Price: $189.51 +0.22%

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    4 Buy, 5 Hold, 3 Sell

Rating Trend: Up Up

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    Up: 0 | Down: 0 | New: 0
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VeriSign (NASDAQ: VRSN) shares were pressured on Monday. Wells Fargo's Gray Powell tied the decline to an announcement by the National Telecommunications and Information Administration's (NTIA) that it intent to transition key Internet domain name functions.

"This morning VRSN shares are down 8.6% vs the Nasdaq Composite +1.2%, we think due to confusion on an announcement from the NTIA to transition oversight of key internet domain functions. The NTIA plans to let its contract with ICANN expire in September 2015 and require the organization to adopt a global governance model," said Powell. "We spoke with VRSN to get some clarity on the issues. The NTIA is specifically looking to transition components of IANA (Internet Assigned Numbers Authority). VRSN performs some of these functions like root zone management for IANA that could be impacted by the NTIA transition. However, VRSN performs these functions for free and they are not related to the .com and .net contracts . . . We think confusion on this issue has created a buying opportunity for VRSN."

\Wells Fargo has an Outperform rating on VeriSign.

For an analyst ratings summary and ratings history on VeriSign NASDAQ: VRSN) click here. For more ratings news on VeriSign click here.

Shares of VeriSign closed at $54.85 yesterday.


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