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Axiom Analysts Have Closed Their Short Call On Cimpress

Axiom Analysts Have Closed Their Short Call On Cimpress

Axiom said in a research note released Monday that it is closing its short call on Cimpress NV (NASDAQ: CMPR). The firm raised its ratings on the company to Hold from Sell, given the 18 percent depreciation in the shares of the company since it lowered its rating in June.

Fiscal Q1 Review

Reviewing the fiscal first quarter results , analyst Victor Anthony noted that the company's revenues, adjusted EBITDA, earnings per share and free cash flow per share all missed estimates, with growth decelerating across business lines and margins compressing. Flooding at the company's Vistaprint production facility led to a 200-basis-point drop in constant currency revenue growth, the analyst noted. According to the analyst, these revenues would now be shifted to the second quarter.

Axiom also noted revenue hit from a reduction in shipping prices and a loss of revenues from partners. The firm attributed the gross margin pressure to shipping reductions and a higher mix of lower-margin upload and print business.

Issues Reflected In Consensus

Although the issues the firm raised in its early June downgrade, namely investment in shipping prices, increased advertising expenses and the wind-down of partner relationships — ramped up investments and slowing growth at U&P — still persist, it said it is less negative now. These issues are properly reflected in the consensus estimates.

Lowering Estimates, Price Target

The firm reduced its 2017 revenue estimate by 1 percent and adjusted EBITDA estimate by 6 percent and its free cash flow estimates to $2.82 from $3.40 per share.

Along with the upward move of its rating to Hold, Axiom also raised its price target to $82 from $80.

At the open, shares of Cimpress were up 1.07 percent at $83.43.

Editor Note: A previous version of this article stated that Cimpress had appreciated 18 percent since June. However, the stock had depreciated by that amount. We apologize for the error.

Latest Ratings for CMPR

Sep 2019UpgradesSellHold
Mar 2019UpgradesSellHold
Mar 2019UpgradesSellHold

View More Analyst Ratings for CMPR
View the Latest Analyst Ratings

Posted-In: axiom Victor Anthony vistaprintAnalyst Color Upgrades Analyst Ratings Tech Best of Benzinga


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