On Dec 21, Zacks Investment Research updated the research report on business services provider Cimpress N.V. CMPR.
Cimpress is currently shifting its value proposition away from deep discounts and free-offer direct marketing efforts to tap the large market opportunity beyond the traditional base of highly price-sensitive customers. The company is making solid progress with investments in new markets and the business strategy is now focused on higher quality products and delivery, increased customer service and more transparent pricing, which is designed to promote long-term customer relationships.
In addition, Cimpress has been acquiring firms with complementary product offerings and expects to ramp up its revenues with operating synergies through economies of scale and technological collaboration to serve a wide spectrum of customers across the globe. All these augur well for the long-term growth of the company.
The scale of Cimpress’ operation gives small business customers access to quality products and printing services that would otherwise have been out of their reach. The company’s product line has expanded to include a wide variety of offerings for its customers’ marketing needs. Many of the company’s competitive advantages stem from its advanced use of technology. Due to the high volume of orders placed through its systems each day, Cimpress is able to execute multiple orders in one print run. In this manner, the company is able to use high-end printing presses that normally would not be economically feasible for small batch printing jobs. The company is also focusing on digital marketing services and is comprised of websites, email marketing, online search marketing and social media marketing.
Cimpress’ business is scalable and its web presence and online tools for customer use are well established. While additional demand would result in various capital investments such as additional printing presses, these fixed costs would be spread over a wider revenue base. The company’s solid operational position is also reflected in its history of strong fundamentals.
Moving forward, Cimpress is focused on leveraging its investments for a strategic repositioning of its brand. The company also expects increased investments in mass customization platform, product expansion, Most of World business unit, acquisition and other important areas.
Cimpress currently has a Zacks Rank #1 (Strong Buy). Other stocks that look promising in the industry include CBIZ, Inc CBZ, Exponent Inc EXPO and Navigant Consulting Inc. NCI, each carrying a Zacks Rank #2 (Buy).
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