JPMorgan analysts raised their price target on VeriSign to $40 from $38 on Tuesday.
"We are raising our 1Q12 net add estimate to 2.75M up from 2.5M as sources indicate better traction through the quarter," JPMorgan analysts wrote. "This adds [about] $2M in revenue to both FY12 and FY13, and a penny of EPS."Shares of VeriSign hit a 52-week high on Wednesday of $39.54. The stock's 52-week low of $27 was set on Sept. 22. VeriSign has an estimated price-to-earnings ratio for next year of 17.53 times; the average for computer services companies is 23.31. For comparison, Teradata (TDC) and Equinix (EQIX) both have higher forward P/Es of 22.54 and 42.21, respectively. Ten of the 16 analysts who cover VeriSign rated it buy. Five analysts gave the stock a hold rating and one rated it sell. TheStreet Ratings gives VeriSign a B- grade with a buy rating and $44.98 price target. The stock has risen 10.58% year to date.
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