Shares of Vocus (VOCS) Positive as Barrington Starts at Outperform
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Price: $17.98 --0%
Rating Summary:
2 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barrington Research initiated coverage on shares of Vocus, Inc. (NASDAQ: VOCS) today with an Outperform rating and $25 price target. Shares are trading up 0.44 percent to $20.36.
The company has increased its revenue from small organizations from 0 percent in 2005 to 30 percent now. Management anticipates on raising this ratio to roughly 70 percent over time. 85 percent of the company's revenue is from subscriptions while the remaining 15 percent is transaction based. The firm forecasts a 16 percent revenue growth for 2012 to $133 million.
VOCS has strong pricing power as large customers will spend around 15 percent more when they renew. Midsize and small customers typically spend 20 and 25 percent when they renew.
An analyst at Barrington Research comments, "Given the slower growth of its core PR business, unproven market suite, and economic cyclicality of PR/marketing budgets, we think the stock should trade in line with the core SaaS group and possibly above given upside potential from its newer solutions."
For FY11 and FY12, the firm estimates EPS of $0.79 and $0.91.
For more ratings news on Vocus, Inc. click here and for the rating history of Vocus, Inc. click here.
Shares of Vocus, Inc. closed at $20.27 yesterday.
The company has increased its revenue from small organizations from 0 percent in 2005 to 30 percent now. Management anticipates on raising this ratio to roughly 70 percent over time. 85 percent of the company's revenue is from subscriptions while the remaining 15 percent is transaction based. The firm forecasts a 16 percent revenue growth for 2012 to $133 million.
VOCS has strong pricing power as large customers will spend around 15 percent more when they renew. Midsize and small customers typically spend 20 and 25 percent when they renew.
An analyst at Barrington Research comments, "Given the slower growth of its core PR business, unproven market suite, and economic cyclicality of PR/marketing budgets, we think the stock should trade in line with the core SaaS group and possibly above given upside potential from its newer solutions."
For FY11 and FY12, the firm estimates EPS of $0.79 and $0.91.
For more ratings news on Vocus, Inc. click here and for the rating history of Vocus, Inc. click here.
Shares of Vocus, Inc. closed at $20.27 yesterday.
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