NeuStar is Not Good Value for Money

NeuStar, Inc. (NYSE: NSR)
Technology; Application Software; Sell

NeuStar, a communication services company, provides marketing analytics, IT security and data services to several clients across the globe. The company also served as the local number portability administrator in the U.S. until. Following are the reasons for our bearish view on NeuStar:

1. Loss of local number portability contract is a material setback for NeuStar, Inc. 
2. There are established and large players in marketing and security space; competition is intense.
3. Sell-side sentiment is largely negative, and earnings growth is not expected for couple of years. 

We maintain a $31 long-term price target for NeuStar, which doesn't constitute a decent return our a longer period of time. Investors should remain at the sidelines for now. Detailed research can be accessed through First Movers.