Piper Jaffray Reiterates Overweight Rating On VCI

Piper Jaffray is reiterating its Overweight rating and also maintaining its $42 price target on Valassis Communications VCI based 1Q results, but highlights a promise in future performance on the stock. According to Piper Jaffray, “With good visibility on growth in Q2, we believe future stock performance relies on the MSD growth expectation management has set for shared mail in 2H11. We remain optimistic 2H11 results will better 1H11 and management's bullish outlook for its shared mail pipeline increases our conviction level. We reiterate our OW rating and $42 PT (11x Adj Cash EPS).” VCI closed at $30.09 yesterday.