Zacks Investment Research upgraded shares of SMTP Inc. (SMTP) from N/A to OUTPERFORM on October 15, 2014, with a target price of $16.
SMTP is a small growing SaaS provider of email delivery services that is in the process of buying two other email services companies to add marketing automation and a front-end for email creation and tracking. These acquisitions should be accretive and double revenues next year while improving profitability and increasing the total addressable market for the company. With an 8.3% dividend yield and enterprise value to sales of only 2.7 times 2014 estimated revenues, far below its peers, we believe the stock is a BUY.
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