Wall Street Unsure What New Shutterfly CEO Means For M&A Chatter
Axiom’s Victor Anthony maintained a Buy rating for Shutterfly, Inc. (NASDAQ: SFLY), with a price target of $51, after the company announced the appointment of a new CEO.
Shutterfly announced the appointment of Christopher North as its new CEO effective May 31, 2016. North comes with ten years of experience at Amazon.com, Inc. (NASDAQ: AMZN). “The compensation package seems fair and provides incentives via the options package to drive the share price,” analyst Victor Anthony stated.
New CEO To Bring Expertise
The CEO would bring his expertise in ecommerce, distribution center management and category management to Shutterfly, besides providing the company with a growth and product focus. North would also help in Shutterfly’s efforts to expand its international presence, Anthony mentioned.
“Working under Jeff Bezos, a visionary in our view, and one who has a reputation for driving his employees towards excellence, Mr. North likely developed a solid management skill set which should be useful to driving growth for Shutterfly,” the analyst wrote.
The latest appointment is unlikely to have any impact on the possible acquisition of Shutterfly, Anthony said.
Baird: Company Will Likely Stay Independent
In a separate note, Baird analyst Colin Sebastian said a recent change of control provisions for C-suite executives "make sense given the PE interest." The changes "stipulates that in the event of an acquisition and subsequent termination of the management team, the respective individuals would be made whole on compensation and unvested stock grants," he wrote.
Despite this, Sebastian said his team believes Shutterfly remains committed to its strategy as an independent company, adding that the "growth-oriented" North hire underscores that.
Latest Ratings for SFLY
|Nov 2016||Aegis Capital||Initiates Coverage On||Buy|
|Oct 2016||Axiom Capital||Upgrades||Hold||Buy|
|Oct 2016||RBC Capital||Maintains||Outperform|
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