Constant Contact (CTCT) Estimates Raised at Needham & Company

Needham & Company analyst Michael Huang reiterated a Buy rating and $39 price target on Constant Contact (NASDAQ: CTCT) following the company's positive Q1 preannouncement after the close.

Huang said, "CTCT’s positive Q1 preannouncement (highlighted by reaccelerated revenue growth to 15.5% y/y vs. up 13% y/y in 4Q13) and the upward revision to 2014 guidance was a much-needed dose of relief against a backdrop of valuation turmoil among our SaaS names over the past couple of weeks. CTCT shares have traded down 27% over the past month (vs. Nasdaq down 5%) largely for reasons unknown, and our sense is that the CTCT’s valuation multiple could expand nicely given a reacceleration scenario that we see playing out."

The firm is revising up FY 2014 rev estimate to $329.7 million from $322.6 million and our EBITDA estimate to $60.2 million from $55.9 million.

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 $21.92 yesterday.

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