Dougherty & Co reiterates a 'Sell' on Constant Contact (CTCT); Cutting Estimates As Acquisition of SinglePlatform Not Impressive
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Price: $15.16 +3.76%
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 1 | New: 6
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 1 | New: 6
Trade CTCT Now!
Dougherty & Co reiterates a 'Sell' on Constant Contact (NASDAQ: CTCT) price target of $16.00 (from $21.00).
Analyst, Raghavan Sarathy, said, "Last week, Constant Contact announced the acquisition of SinglePlatform (SP), a digital storefront provider, for $70 million, which is comprised of $65 million in cash and $5 million in cash and equity compensation, or 14x current revenue rate. SinglePlatform is a New York-based company with 60 employees. It has more than 10,000 customers."
"We do not see any product synergies between restaurant/product menu and email newsletter. Plus, Constant Contact has to spend money to make money from this business due to lack of operational synergies...Contrary to the company’s assertion, the acquisition of SinglePlatform is a clear sign that new products cannot reaccelerate revenue growth next year...Consensus 2013 profitability estimates appear aggressive."
For an analyst ratings summary and ratings history on Constant Contact click here. For more ratings news on Constant Contact click here.
Shares of Constant Contact closed at $18.76 yesterday, with a 52 week range of $14.46-$32.18.
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Analyst, Raghavan Sarathy, said, "Last week, Constant Contact announced the acquisition of SinglePlatform (SP), a digital storefront provider, for $70 million, which is comprised of $65 million in cash and $5 million in cash and equity compensation, or 14x current revenue rate. SinglePlatform is a New York-based company with 60 employees. It has more than 10,000 customers."
"We do not see any product synergies between restaurant/product menu and email newsletter. Plus, Constant Contact has to spend money to make money from this business due to lack of operational synergies...Contrary to the company’s assertion, the acquisition of SinglePlatform is a clear sign that new products cannot reaccelerate revenue growth next year...Consensus 2013 profitability estimates appear aggressive."
For an analyst ratings summary and ratings history on Constant Contact click here. For more ratings news on Constant Contact click here.
Shares of Constant Contact closed at $18.76 yesterday, with a 52 week range of $14.46-$32.18.
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