Sell Alert
Neustar (NSR)
from Upside
Neustar dipped today after RBC Capital downgraded the stock to sector perform from outperform. An analyst at RBC believes the company will likely win the renewal of an important FCC contract to administer the registry that enables phone number portability.
However, the analyst said unfavorable pricing could crimp earnings. Interestingly, RBC raised its estimated price target for Neustar to $57, implying about 13% upside. Neustar has retreated 12% since setting a high on July 31, but the stock remains a solid pick for year-ahead gains, reflecting a strong market position, reasonable valuation, and outstanding Quadrix scores.
Neustar, with an Overall score of 97, is a Best Buy.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, September 24, 2013