Oppenheimer & Co. cuts its rating on Verisign (VRSN +0.1%) to Perform from Outperform. The stock is too rich, trading at 25 times 2011 estimated EPS, and already reflects potential catalysts. After a special dividend is paid on Dec. 20, many investors will sell, claims Oppenheimer.
Symantec (SYMC) is close to a deal to acquire a unit of VeriSign (VRSN) for about $1.3B, sources say. The unit sells products that businesses use to encrypt and protect information. VRSN -1.2% AH, SYMC -0.6%.
VeriSign Inc is a provider of internet infrastructure services for the networked world. It provides network confidence & availability for mission-critical Internet services, such as domain name registry services & infrastructure assurance services.