Analyst Note| Brian Colello, CPA |
Wide-moat Verisign reported mixed second-quarter results, finishing the quarter largely in line with our top-line estimates while narrowly missing our bottom-line expectations. The company also moderately increased its fiscal 2021 guidance for domain-name and sales growth, citing better business conditions across geographies for the upward revision. We are maintaining our fair value estimate of $187 per share. We view the firm’s shares as overvalued and recommend investors wait for a larger margin of safety before committing capital to the name.