Web.com with Big Upside

Web.com (WWWW - Snapshot Report) is a leading provider of Web services for small and medium businesses (SMBs). The company uses a factory approach that it can leverage over thousands of customers. Web.com currently has minimal competition, as most competitors are much smaller and focus on customized solutions at higher price points.

We have reduced our estimates for fiscal 2009 and 2010. Although the company is currently feeling pressure from a slowing consumer market, which many of its customers cater to, the long-term outlook still looks bright.

We maintain our Buy recommendation on WWWW with our six-month target price of $6.50. Our target price represents a multiple of 9.3x our new 2009 EPS estimate of $0.70 and 1.6x our new 2009 revenue estimate of $4.08.

Anita Mohata contributed to this report.

Read the full analyst report on WWWW