Barclays Maintains an 'Overweight' on Shutterfly (SFLY); Snapping Up The Competition

March 2, 2012 2:23 PM EST
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Price: $52.40 +0.54%

Rating Summary:
    9 Buy, 11 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 19 | New: 13
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Barclays maintains an 'Overweight' on Shutterfly Inc. (NASDAQ: SFLY) price target of $40.00.

Analyst, Mark May, said, "We view this transaction, if it closes at or near the currently proposed terms, positively for four main reasons: 1) the price is lower than we had expected and represents an attractive value...2) the deal represents consolidation of one of the largest U.S. competitors and could positively influence industry pricing; 3) SFLY has experience in executing similar competitor customer list transactions, such as the 2011 acquisition of PhotoWorks from American Greetings; and 4) while details are limited, we would expect the transaction to be nicely accretive given nominal costs associated with transitioning and conversion of Kodak customers."

NOTE - Yesterday, SFLY announced it would acquire Eastman Kodak's customer accts in US & Canada for $23.8 mln.

For an analyst ratings summary and ratings history on Shutterfly Inc. click here. For more ratings news on Shutterfly Inc. click here.

Shares of Shutterfly Inc. closed at $26.91 yesterday.

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