Benchmark Reiterates Buy, Raises PT to $25 on Valassis Communications

Benchmark maintains its Buy rating on Valassis Communications VCI and raises its price target to $25 from $23, as restructuring likely lead to flat revenues but higher EPS for 2012. Benchmark says Valassis “revised its 2011 guidance and offered initial 2012 guidance to reflect current trends and a planned reorganization of certain business segments. Although the revenue outlook was somewhat disappointing, 2011 EPS was guided upward to $2.62 excluding special items vs. $2.56 prior, while 2012 EPS was guided to $3.07, topping current consensus at $2.99.” VCI closed at $19.63 per share on Tuesday.