UPDATE: Deutsche Bank Initiates Coverage on Shutterstock with Hold Rating, $26 PT

In a report published Monday, Deutsche Bank initiated coverage on Shutterstock

with a Hold rating and $26.00 price target. Deutsche Bank noted, “Shutterstock is the leading online marketplace for royalty free stock imagery. The company manages a two-sided marketplace model where contributors upload professional photos that customers can download under subscription or pay-per-image plans. Shutterstock manages both sides of the marketplace, acquiring customers via online marketing and paying out contributors for their content (around 29% of image value). SSTK is one of the most profitable marketplace models in our coverage universe, generating ~20% or better EBITDA margin, while growing revenue at a ~30% CAGR.” Shutterstock closed on Friday at $24.82.