VeriSign (VRSN) delivered solid Q2 results overall and lifted its full-year outlook, indicating expectations for strong domain growth, Wedbush Securities said in a note Friday.
The company continues to benefit from accelerating domain growth, with AI tailwinds that could lead to upward estimate revisions, the investment firm said.
AI is making website development and content creation easier, and Verisign's "secure role in the DNS and the trust of .com/.net is helping drive it as an authoritative source," according to the note.
Management lifted and narrowed its full-year domain name base growth outlook to a range of 5.2% to 6% for this year, not including revenue from the .web domain, the firm noted.
Wedbush Securities reiterated its outperform rating on VeriSign and lifted the price target to $324 from $318.
Shares of VeriSign were up 4.8% in Friday trading.
Price: $274.25, Change: $+12.67, Percent Change: +4.84%