RealMoney

William Blair says shares of NeuStar (NSR) remain "significantly undervalued" and that yesterday's news does not change its thesis on the stock. The firm continues to expect NeuStar will lose the Number Portability Administration Center vendor contract after the Wireline Competition Bureau provided a draft order to the FCC to initiate contract negotiations with Ericsson's (ERIC) Telcordia unit. However, it thinks Telcordia will be unable to transition the system, fully tested and implemented by June 30. As such, it thinks the FCC is very likely to extend NeuStar's current contract for up to 18 to 24 months. Further, William Blair believes investors may not be fully appreciating the value NeuStar's non-NPAC businesses, which collectively continue to grow in the double digits and have adjusted EBITDA margins of 35%-40%, it notes. The firm keeps an Outperform rating on NeuStar. Shares of the cloud-based information services and data analytics provider declined $2.88 yesterday to $22.25.