Constant Contact, Inc. (CTCT) Maintains Buy Rating

Analysts Richard Davis and David Hynes at Needham have maintained their Buy rating for Constant Contact, Inc. (NASDAQ: CTCT). The company reported results for the December quarter in line with analysts’ estimate.

Constant Contact reported net new customer additions of 23,300 for the quarter. The company reported a loss of $0.01 on revenue of $36.2 million, in line with analysts’ estimate.

Analysts expect the company to post a 33% growth in revenue, and a 178% growth in EPS in 2010. According to analysts, the free cash flow should more than double on revenue growth in the range of 30%-35%.

Analysts at Needham have set a 12-month price target of $24 for Constant Contact, Inc., which is based on an EV/revenue multiple of 3.3x the 2010 revenue estimate of $171.5 million.

According to analysts, the company faces major risks from an unfavorable macro-economic environment and competitive threats.