) earnings for the third quarter of fiscal 2012 were well ahead of
the Zacks Consensus Estimate, driven primarily by
higher-than-expected revenue growth. The company is expanding
inorganically with the acquisition of Dutch photo book company
Albumprinter and Webs, as well as forming strategic partnerships
with companies like Staples.
Apart from inorganic growth, the company's long- term organic
growth guidance looks commendable. Also, the company is gradually
emerging as an international company. Although VistaPrint s 2012
performance could be challenging due to a few planned investments,
which could weigh on its bottom line, we believe this downside risk
is already reflected on the current share price.
Hence, we upgrade the stock from a Neutral to Outperform
recommendation. Our six-month target price of $39.00 equates to
37.1x our earnings estimate for fiscal 2012. This price target
implies an expected total return of around 19.0% over that period.
VISTAPRINT NV (VPRT): Free Stock Analysis
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