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VistaPrint, Ltd. NV (VPRT)

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VistaPrint, Ltd.'s (VPRT) earnings for the third quarter of fiscal 2012 were well ahead of the Zacks Consensus Estimate, driven primarily by higher-than-expected revenue growth. The company is expanding inorganically with the acquisition of Dutch photo book company Albumprinter and Webs, as well as forming strategic partnerships with companies like Staples.

Apart from inorganic growth, the company's long- term organic growth guidance looks commendable. Also, the company is gradually emerging as an international company. Although VistaPrint s 2012 performance could be challenging due to a few planned investments, which could weigh on its bottom line, we believe this downside risk is already reflected on the current share price.

Hence, we upgrade the stock from a Neutral to Outperform recommendation. Our six-month target price of $39.00 equates to 37.1x our earnings estimate for fiscal 2012. This price target implies an expected total return of around 19.0% over that period.

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