NEW YORK (TheStreet) --Constant Contact Inc. was upgraded to "outperform" from "neutral" at Credit Suisse on Tuesday morning. The firm said it raised its rating on the provider of on-demand engagement marketing tools based on its belief Constant Contact's revenue growth will accelerate in 2015 and 2016 to figures above current consensus estimates. "Our new bottom-up ARPU analysis gives us more confidence in our above-consensus revenue growth and EPS estimates which are driven by an increasing mix of Constant Contact's bundled toolkit product, which we estimate will generate higher over all ARPU and will cause revenue growth to accelerate towards the company's +20% growth target within the next two years," Credit Suisse said. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Shares of Constant Contact closed at $38.26 on Monday afternoon. Separately, TheStreet Ratings team rates CONSTANT CONTACT INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate CONSTANT CONTACT INC (CTCT) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook." Highlights from the analysis by TheStreet Ratings Team goes as follows: The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 56.6% when compared to the same quarter one year prior, rising from $3.32 million to $5.20 million. CTCT's revenue growth trails the industry average of 28.5%. Since the same quarter one year prior, revenues rose by 15.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share. CTCT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.63, which clearly demonstrates the ability to cover short-term cash needs. Net operating cash flow has increased to $18.35 million or 34.32% when compared to the same quarter last year. In addition, CONSTANT CONTACT INC has also modestly surpassed the industry average cash flow growth rate of 26.10%. The gross profit margin for CONSTANT CONTACT INC is currently very high, coming in at 79.65%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CTCT's net profit margin of 6.22% significantly trails the industry average. You can view the full analysis from the report here: CTCT Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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