Zacks Investment Research upgraded shares of Vocus Inc. (VOCS) from UNDERPERFORM to NEUTRAL on July 10, 2013, with a target price of $11.00.
Vocus' first quarter adjusted loss per share of $0.06 was wider than the Zacks Consensus Estimate. However, the company generated solid year-on-year revenue growth. The company benefited from the high revenue generation ability of its new marketing suite. The company has also successfully capitalized on strategic acquisitions. By leveraging iContact's capabilities and increasing the sales team, Vocus is eyeing the cloud-space opportunities in the SMBs. However, continuous decline in demand for its legacy PR solution and lesser focus on selling low-end solutions to small businesses, margin contraction and currency fluctuations could prove to be a bottleneck. But growing popularity of its marketing suite and renewed focus into the mid-sized market are catalysts. We therefore upgrade the stock to Neutral from Underperform.
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