UPDATE: Credit Suisse Downgrades VeriSign to Neutral; Risk/Reward Now Balanced

Credit Suisse downgraded VeriSign

from Outperform to Neutral. Credit Suisse commented, "The recent decision on the .com renewal agreement to maintain .com pricing at $7.85 with no price increases in the next six years has largely capped upside to revenue estimates to growth in the installed base of .com and .net domain names in the near term. Although we expect VeriSign to continue to steadily improve margins with consistent revenue growth driven by net additions to the .com and .net registries, we view the incremental revenue growth catalysts of new gTLDs and the company's IP licensing strategy as unlikely to meaningfully contribute to revenue until 2014 at the earliest." VeriSign closed at $44.78 on Tuesday.