Goldman Sachs Upgrades Shutterfly Inc. (SFLY) to Buy
- Equinix (EQIX) to Acquire TelecityGroup in $3.6B Deal
- Market Wrap: Avago, Broadcom Make it Official; Pending Home Sales Ramp in April; JPMorgan Plans Major Job Cuts
- GameStop (GME) Tops Q1 EPS by 9c; Bumps Outlook
- After-Hours Stock Movers 05/28: (HRTX) (STML) (GME) (BLOX) Higher; (DECK) (CLLS) Lower (more...)
- Splunk (SPLK) Tops Q1 EPS by 2c; Guides Q2 Revenue Ahead of Views
Goldman Sachs upgraded Shutterfly Inc. (NASDAQ: SFLY) from Neutral to Buy with a price target of $52.00 (from $47.00), suggesting 27% upside.
Analyst Heath Terry comments, " At less than 5x 2015 EV/EBITDA, we believe the risk/reward in owning SFLY is favorable as the company continues to post at least mid-teens organic growth, leverages a three-year technology and fulfillment driven investment cycle into more sustainable growth, and potentially benefits from the development of a higher margin, less seasonal, more future-proof, cloud product in ThisLife. While consumer transition to digital cards, invitations, and photos remains a long term risk, ThisLife could represent compelling upside at the current valuation."
The firm raised 2014-16 revenue and adjusted EBITDA estimates 2% and 3%, on average, to reflect modest contribution from ThisLife and potential margin leverage in 2015 and beyond.
FY 2014 EPS goes from ($0.33) to ($0.32), FY 2015 EPS goes from $0.68 to $0.82 and FY 2016 EPS goes from $1.09 to $1.31.
Shares of Shutterfly Inc. closed at $41.08 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Janney Capital Downgrades Abercrombie & Fitch (ANF) to Sell
- Fairway Group Holdings (FWM) PT, Estimates Raised at Jefferies
- Sterne Agee CRT Reiterates Buy Following Brown Shoe (BWS) 1Q Results
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Hot Upgrades, Upgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!