Shutterfly (SFLY) Weakness an Overreaction - Baird
- Top 10 News for 9/26 - 9/30: Deutsche Bank Soars on Settlement; Twitter Back in the M&A Fray; Nike 'Just Didn't Do It' in Q1
- Wall Street rallies, led by Deutsche Bank, financials
- Viacom (VIAB) Forms Special Committee; Will Explore Potential Combination with CBS (CBS)
- Deutsche Bank (DB) Said Near $5.4B Settlement with U.S. - AFP
- Oil up second straight month on OPEC-fueled rally
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Baird analyst Colin Sebastian weighed in on Shutterfly Inc. (NASDAQ: SFLY) on news of Amazon Prints, a digital photo printing service that offers standard digital printing, photo books, and eventually will expand to stationary and calendar.
Sebastian notes while Shutterfly's brand provides some competitive insulation, the Amazon announcement comes on the heels of Google Photos rumored expansion into physical printing, and dredges up old concerns around competitive pressure from large-scale platforms (e.g., Apple Photo books a long-time, but small-scale competitor; potential Facebook photo monetization).
He said while they believe today's stock move is an overreaction, Amazon's technology sophistication should not be completely discounted.
"We would be buyers on today's weakness, assuming Amazon's photo offering is geared toward augmenting Prime/Drive value vs. disrupting the photo book market," the analyst commentd.
The firm maintained an Outperform rating and price target of $59.00
Shares of Shutterfly Inc. closed at $50.48 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Nutanix (NTNX) IPO Opens Up 66%
- BMO Capital Reiterates Outperform on Pepsi (PEP) Following Solid 3Q
- Gamal Aziz Resignation from Wynn Macau (WYNN) Suggests Disappointing Palace Post-Open Ramp - Nomura
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments, Trader Talk
Related EntitiesRobert W Baird
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!