Zacks Investment Research downgraded shares of Vistaprint N.V. (VPRT) from OUTPERFORM to NEUTRAL on September 03, 2012, with a target price of $38.00.
We are optimistic about Vistaprint's long-term prospects and its focus on inorganic growth. The company s acquisition of the Dutch photo book company, Albumprinter & Webs as well as strategic partnerships with companies like Staples are paying off. Apart from inorganic growth, its long-term organic growth guidance looks commendable. Also, Vistaprint is gradually emerging as an international company and remains all set to expand its Asian presence. However, a few planned investments and acquisitions could weigh on its bottom line in 2013. A huge concentration in the European market remains a cause of concern owing to the Euro-zone debt crisis. To add to the worry, an unfavorable exchange rate will also take a toll on Vistaprint's revenue, given its substantial exposure to international markets. Hence, we downgrade the recommendation from Outperform to Neutral.
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