Market Overview

Raymond James Upgrades Shutterfly After Q1 Print

Share:
Raymond James Upgrades Shutterfly After Q1 Print

Shutterfly, Inc. (NASDAQ: SFLY) reported first-quarter results which prompted Raymond James to become bullish on the stock.

The Analyst

Raymond James' Aaron Kessler upgraded Shutterfly from Market Perform to Outperform with a new $56 price target.

The Thesis

Shutterfly's first-quarter report was mostly in line with expectations, including a 63-percent growth in revenue year-over-year to $325 million and an EBITDA loss of $45 million, Kessler said in the note. The company's adjusted EBITDA guidance of $400-$450 million, which was delivered in the proceeding quarter looks "very achievable."

Kessler said the company needs to show a "reasonable" baseline growth rate of 3-5 percent in the coming years to hit its 2021 objectives. Other near-term goals include $42 million in manufacturing synergies from the Lifetouch acquisition along with reduced integration costs and corresponding $25 to $33 million in EBITDA from revenue synergies.

The core Shutterfly brand remains healthy and a big part of the slowdown in the back half of 2018 is due to a move away from low ROI free orders, according to the analyst. The core brand's growth has since grown at a "relatively stable" rate, which should improve in the back half of 2019 and into next year.

Shutterfly's stock also has upside potential from private equity groups who are reportedly evaluating an acquisition of the company.

Price Action

Shares of Shutterfly were trading higher by more than 4 percent to $44.02 at time of publication.

Related Links:

Shutterfly Analysts Weigh Potential Acquisition

Lifetouch Acquisition Is A Game Changer For Shutterfly, Goldman Sachs Says In Upgrade

Latest Ratings for SFLY

DateFirmActionFromTo
Jun 2019DowngradesBuyHold
Jun 2019UpgradesSellNeutral
Jun 2019DowngradesOutperformMarket Perform

View More Analyst Ratings for SFLY
View the Latest Analyst Ratings

Posted-In: Aaron Kessler Lifetouch Raymond JamesAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (SFLY)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
MSGNDowngrades
HUBBInitiates Coverage On160.0
CTREUpgrades25.0
GLNGMaintains27.0
SEMaintains45.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

As Intel Falls After Q1 Report, Analysts Recommend Buying The Dip

Elanco Animal Health Announces $245M Stock-For-Stock Acquisition Of Aratana Therapeutics