Oppenheimer Maintains Perform on Neustar (NSR)

Oppenheimer is out with its report today on Neustar NSR, maintaining Perform. In its report sent to clients, Oppenheimer states, "NSR's 4Q GAAP EPS of $0.30 was below our $0.42 estimate largely due to $14.5M of one-time charges. Revenue of $138M was slightly below our $139.6M and the Street's $139M. FY11 guidance calls for revenue of $585-600M (11-14%) and EBITDA margins of 42-43%, below 44% consensus level. While NPAC revenue lends predictability to the model, we continue to see challenges on the non-NPAC segment, especially in IP services. Nevertheless, NSR remains well supported by its monopolistic presence in Number Management and opportunities in IIS. An ongoing $300M share buyback program (NSR repurchased $15M worth in 4Q) should also provide some support. Maintain our Perform rating." Shares of NSR are closed yesterday at $26.95, down 1.50% from Tuesday's close.