UPDATE: Topeka Capital Markets Upgrades Shutterfly to Buy on Competitive Confidence

Topeka Capital Markets raised its rating on Shutterfly

from Hold to Buy with a $40 price target. Topeka Capital Markets commented, "We are upgrading the shares of Shutterfly to Buy from Hold and setting a $40 price target for year-end 2013, following what we believe was a relatively benign competitive environment in 4Q12. We believe that the past promotional period is indicative of what we can expect going forward. In addition, we now have greater confidence in the management team, believe that current competitors will continue to struggle to achieve sustained profitability, and see the Company exceeding 4Q12 consensus revenues and Adjusted EBITDA estimates." Shutterfly closed at $31.69 on Thursday.