Topeka Maintains Hold On Vistaprint Following The Company’s Analyst Day
In a research note published today, Topeka Capital analyst Victor Anthony maintained a Hold rating on Vistaprint N.V. (VPRT) with a $50 price target, following the company’s analyst day.
Anthony wrote, “Vistarprint’s Analyst Day focused largely on their change in marketing and pricing strategy to address higher expectation customers, where they see a bigger monetization opportunity than their traditional focus on price primary micro businesses. Longer-term the belief is that this shift will lead to a maximizing intrinsic value per share”.
Anthony added, “The focal point of the Analyst Day was delivered by Trynka Shineman, President of Vistaprint Business Unit, in which she detailed how Vistaprint plans to gain share of the $30B microbusiness market by targeting the higher expectations segment, which constitutes a third of the market. Combined with the price primary segment, which has been their traditional focus, Vistaprint is targeting approximately 45% of the market that are not locally focused. The higher expectations market are more full-time businesses, have more complex marketing needs, and need more design help. VPRT plans to launch a new homepage and a new design studio in September as they begin to increase the design service they offer, and will launch a strong pipeline of new products including 3,300 new SKUs of apparel. Along with those changes they have shifted their pricing strategy away from deep discounts and free offers to significantly lower list prices, lower discounts, and reduced shipping”.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Victor Anthony has a total average return of 17.9% and a 62% success rate. Anthony is ranked #68 out of 3206 analysts.
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