Constant Contact, An “Under-Appreciated Growth Story,” Says Oppenheimer

Despite the recent ~15% run in Constant Contact, Inc.

(vs. ~5% in NASDAQ) over the last few weeks, Oppenheimer said that it believes the stock is one of the most under-appreciated growth stories in its coverage list. “Based on our analysis, which examined the intrinsic value of CTCT in a ‘steady-state' environment of 435K subscribers, we arrive at ~$1.50 of fully taxed earnings power,” Oppenheimer writes. “Applying j2 Global's valuation to this estimate (similar business model with little/zero growth trading at ~14x NTM EPS), we believe a "no-growth" CTCT would trade in the low-$20s range.” Oppenheimer said that Constant Contact still has many profitable growth drivers in front of it (new subscriber growth, additional product introductions and rising ARPU), “and we would be buyers of the stock at current levels.” Constant Contact currently trades at $22.95.