Goldman Raises Shutterfly's Price Target To $50, Remains Neutral

Goldman has raised its estimates and price target on Shutterfly, Inc. SFLY after the photo-based products and services provider reported better-than-expected quarterly results.

For the second quarter, Shutterfly reported a non-GAAP loss of $0.42 a share versus consensus loss view of $0.59 and GS estimate of a loss of $0.57. Revenue of $204 million also topped the Street view of $200.3 million and GS estimate of $201.1 million.

Customers increased 4 percent, while AOV increased 2.5 percent, driven by strength in core brands, "somewhat offset by softness in Tiny Prints and Wedding Paper Divas."

"While Shutterfly continues to deliver double-digit organic sales growth and is leveraging a three-year technology and fulfillment driven investment cycle, with slowing growth in Consumer and a lack of traction in digital we believe the risk/reward is balanced and remain Neutral rated," analyst Heath Terry wrote in a note.

Shutterfly also raised the low end of its FY16 revenue guidance to $1.13 billion–$1.16 billion (from $1.12 billion–$1.16 billion earlier), bracketing consensus of $1.15 billion. Goldman cut its 2016 revenue forecast by 1 percent to $1.148 billion and adjusted EPS by 11.6 percent to $0.68.

Terry, however, raised his price target goes to $50 from $48.

Shares of Shutterfly closed Wednesday's regular trading session at $49.43 and were up 7.77 percent in the first hour of Thursday's regular trading session, at $53.27.

Full ratings data available on Benzinga Pro.