Jefferies Says Shutterstock Is A 'High Quality Business With A Large Opportunity Ahead'

In a report published Friday, Jefferies analyst Brian Fitzgerald said that

showed a "strong finish" to the year and that the company should be viewed as a "high quality business with a large opportunity ahead of it." Fitzgerald noted three key focus point for investors following its fourth quarter and full year 2014 results. 1. Shutterstock hasn't been "meaningfully" affected by competitor pricing. The company still had approximately 100 percent year over year cohort revenue retention and grew a "very healthy" ex-foreign exchange 36 percent year over year. Fitzgerald noted that the fourth quarter demonstrated the slowest growth in six quarters, but the company is expected to increase its marketing efforts in 2015. 2. The Fotolia acquisition by

could prove to be a "meaningful" competitor for Shutterstock but management believes that its relationship with contributors is a competitive advantage along with the size of its library and quality of content. Fitzgerald added that he will "keep an eye" on the integration efforts going forward. 3. Enterprise now represents approximately 20 percent of overall revenue, which is skewing paid download metrics. Fitzgerald explained that this metric will continue to become less meaningful over time for comparison purposes as Enterprise continues to be a "significant custom offering" for dozens of clients, and contracts range in size from $10,000 to $100,000. Shares were restarted with a Buy rating with a price target lowered to $90 from a previous $110.