Goldman Sachs Upgrades Shutterfly Inc. (SFLY) to Buy

April 11, 2014 6:59 AM EDT
Get Alerts SFLY Hot Sheet
Price: $53.22 +0.72%

Rating Summary:
    9 Buy, 11 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 9
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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.

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 $41.08 yesterday.

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