Citi says VeriSign NTIA cooperative agreement renewal clears ‘major overhang’

Citi notes that the National Telecommunications and Information Administration announced on Friday that the .com Cooperative Agreement with Verisign (VRSN) would automatically renew on November 30, with current pricing constraints in place. The consensus view was one of significant doubt as to whether “the letter of the law” of the contract would hold up, so the firm views this is “a significantly positive development” that clear “one significant overhang on shares,” while noting that the volume side has stabilized but remains more pressured. The firm has a Buy rating and $210 price target on Verisign shares.