Needham & Company Raises Price Target on Shutterfly (SFLY) Following 2Q Results and Guidance

Needham & Company reiterated a Buy rating on Shutterfly Inc. (NASDAQ: SFLY), and raised the price target to $56.00 (from $55.00), following the company's 2Q earnings report. SFLY reported revenue at $204.0M, above guidance of $195-202M and above expectations of $200.3M. Management guided 3Q revenue in the range of $179.2-185.9M, with midpoint below consensus of $185.3M.

Analyst Kerry Rice commented, "Shutterfly reported 2Q16 results above expectations and raised the low-end of its FY16 guidance. The Shutterfly brand revenue increased double-digits and SBS revenue continued to double y/y. Higher revenue and cost controls pushed EBITDA growth to 58% y/y. While Q3 is the lull before the Q4 storm, the company continues to progress on its strategic initiatives, such as migrating customers to its SFLY 3.0 platform, integrating ThisLife, enhancing its printing operations, and broadening its card and stationery catalog on mobile. With the focus now largely on 4Q16, we believe Shutterfly is well positioned to drive revenue upside as enhanced consumer engagement drives additional order volume. We expect continued control costs to leave room for EBITDA upside. We continue to recommend Shutterfly shares."

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 $49.43 yesterday.

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