Commtouch Software (CTCH) a provider of email defense and URL filtering solutions to enterprise customers and OEM distribution partners. The firm is in the cloud technology and has the ability to analyzes 2.5 billion messages a day, which is far superior to the competition’s static solutions which have little chance of catching new outbreaks.
During late 2008, the company released its URL filtering services. The web has more than double the revenue potential of the messaging market. The firm’s OEM business model gives Commtouch the advantage of recurring revenue, higher margins and less exposure to the end markets.
We see value in the shares of Commtouch and rate it an Outperform. Our six-month target price is $4.00 per share.Zacks Investment Research
