Kaufman Bros. Initiates Coverage on Vistaprint (VPRT) with a Buy

October 22, 2009 5:37 PM EDT

Kaufman Bros. initiates coverage on Vistaprint (Nasdaq: VPRT) with a Buy. Price target $60.

Kaufman analyst says, "Our BUY rating is based on: 1) a strong customer value proposition combined with Vistaprint's low-cost leadership position, 2) low customer acquisition costs, 3) numerous growth drivers that should lead to 20% long-term growth including increased share of wallet, increased brand awareness, new products, adoption of digital products, international expansion, and 4) an attractive valuation at 22x calendar 2010 EPS vs. 20% plus long-term earnings growth. Our $60 price target is based on 27x our calendar 2010 pro forma EPS estimate of $2.22...We believe Vistaprint offers a strong value proposition for customers including low prices, high quality, large selection of products and services, and fast turnaround times. On average, we believe Vistaprint's prices are 30% lower than local print stores."

"Vistaprint reports 1Q results on October 29. For 1Q, we estimate $139 million in revenues (22% Y/Y) vs. Street estimates of $137 million and guidance of $135 million-$140 million."

To see more analyst ratings on VPRT Click Here.

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