J.P. Morgan Overweight On VeriSign (VRSN)

J.P.Morgan Chase & Co. is reiterating its Overweight rating on shares of VeriSign (NASDAQ: VRSN), as the company looks to dismiss the CFIT lawsuit.

In a note to clients, J.P. Morgan writes, "progresses. One of the unanswered questions that remain in our minds is who exactly is behind CFIT and will they be able to fund the expense of the litigation process including discovery and trial costs. We would hope discovery will bring forward answers on just who is part of CFIT."

J.P. Morgan goes on to say, "While we like Verisign apparently getting more aggressive, we stand behind our thought that this whole process could still take years to play out. If the case goes to trial at the District level, there still would be the potential for appeal of that ruling at the 9th Circuit Court post decision. All together, the motions in the trial, discovery, trial, and potential appeal could take years to complete."

Shares of VRSN gained 35 cents yesterday to close at $28.83, good for a gain of 1.23%.