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Why Vistaprint Dropped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Vistaprint (Nasdaq: VPRT  ) have dropped today by as much as 12% after an analyst downgraded the stock.

So what: Barclays cut its rating on Vistaprint from "equalweight" to "underweight," which is analogous to a "sell" recommendation. The firm also reduced its price target from $35 to $29, and shares have nearly fulfilled that prophecy today alone with the low trade of $29.06.

Now what: Analyst Mark May cited "intra-quarter data checks, recent exchange rate changes and valuation analysis" for concern that Vistaprint may miss the Street's estimates for fourth-quarter results and fiscal-2013 guidance. Barclays reduced its earnings estimate to a range of $1.72-$1.73 per share in 2012 and $1.79-$1.80 in 2013. The rest of the Street is perched on earnings per share of $1.78 this year and $2.05 next year.

Interested in more info on Vistaprint? Add it to your watchlist by clicking here.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Vistaprint. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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DocumentId: 1911735, ~/Articles/ArticleHandler.aspx, 6/18/2013 6:10:59 PM

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Related Tickers

6/18/2013 4:00 PM
VPRT $47.56 Up +0.16 +0.34%
Vistaprint CAPS Rating: **

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