Analyst: Meet Shutterfly 3.0

In a report published Thursday, analysts at RBC Capital Markets reiterated their Outperform rating on

, while raising the price target from $51 to $52. The company has reported strong Q1 results, while raising its guidance for 2015. Shutterfly reported Q1 revenue and EBITDA ahead of the consensus, with the revenue coming in at the high end of the company's guidance range for the fifth time in the past six quarters. The company reported an increase in both orders and customers during the quarter, despite tougher comps. However, the gross margin contracted in Q1, which the analysts believe was due to restructuring costs, the mix shift towards Home Décor and the higher mix of Enterprise revenue. AOV also declined for the second straight quarter. According to RBC Capital Markets, the rating has been maintained because "1) SFLY's investments clearly expand its TAM beyond the core photo book market; 2) SFLY has reported 20+ percent EBITDA margins in 3 out of the prior 6 years; 3) eCommerce companies have a consistent track record of showing leverage from data & fulfillment center investments." In addition, the company's balance sheet profile and FCF allow Shutterfly to seek out external growth opportunities. The analysts also believe that the Q1 results, with the raised guidance for 2015, reflect that the company's opex leverage is sustainable.