VeriSign Seen With Multiple Catalysts Into 2027, Wedbush Says
VeriSign (VRSN) has the potential for above-average growth with multiple catalysts for the domain registries company into 2027, Wedbush said in a Tuesday note.Growth in internet domain registrations continues to accelerate, partially driven by artificial intelligence trends, while the .web domain registry is launching and is expected to provide incremental growth to the company, Wedbush analysts said. The next price increase for the .com registry takes effect on Nov. 1 and is seen as a catalyst for shares, they said.The Internet Corporation for Assigned Names and Numbers is launching an application process for new top-level domains, and VeriSign may participate and add new top-level domains to its portfolio, the analysts said. The company also gave signals that it plans to introduce a security-related product this year, which has the potential to generate additional revenue and diversify its business, analysts said.VeriSign raised the registry-level wholesale price for .net domain names by around 10%, with the price increase effective on March 1, 2027. This is seen as adding around 50 basis points of growth in 2028, according to the note.Wedbush reiterated the company's stock rating at outperform and raised the price target to $341 from $324.Price: $294.01, Change: $+5.73, Percent Change: +1.99%
