RBC Takes a Cautious Stance on NeuStar

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of NeuStar (NYSE: NSR  ) slumped 2% today after RBC Capital downgraded the communication services specialist to sector perform from outperform.

So what: Despite the downgrade, analyst Daniel Perlin raised his price target on NeuStar to $57 per share, representing about 12% worth of upside to the stock's close on Monday. While Perlin thinks that NeuStar's key contract to manage the Number Portability Administration Center (NPAC) will likely be renewed, he believes there's also good chance that it will be renewed at a lower, revenue-pressuring price.

Now what: As a result of the probable top-line slowdown, RBC lowered its 2015 EPS estimate to $3.77 from $4.34. "We believe (NeuStar) shares could remain range-bound until the renegotiation of the NPAC contract is complete or better visibility becomes available," Perlin wrote in a report to investors. Of course, with the stock now off about 15% from its 52-week highs, long-term Fools might want use this short-term uncertainty as a possible entry point. 

More compelling tech stocks
The tech world has been thrown into chaos as the biggest titans invade one another's turf. At stake is the future of a trillion-dollar revolution: mobile. To find out which of these giants is set to rule the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate, and we'll give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2652078, ~/Articles/ArticleHandler.aspx, 9/26/2016 6:45:18 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:02 PM
NSR $27.33 Down -0.14 -0.51%
NeuStar CAPS Rating: ****