Jefferies Raises Price Target on Shutterfly Inc. (SFLY), Tiny Print Offers Strategic Positioning
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Price: $50.97 --0%
Rating Summary:
4 Buy, 13 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
4 Buy, 13 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is reiterating their Buy rating on shares of Shutterfly Inc. (NASDAQ: SFLY) as they believe that the Tiny Print acquisition was extremely positive for the company. They are raising their price target on the company to $49 from $42.
The firm states that the Tiny Print acquisition strengthens SFLY's competitive position by adding a strong differentiated brand, it expands their market share in a rapidly growing segment, and positions the company to realize meaningful cost synergies over time. Also strategically the deal allows SFLY to consolidate its most comparable competitor and it will provide them with the capability to leverage its own print production and fulfillment to drive TP's margins materially higher. If successful, these can help accelerate growth in SFLY's core PPS, which accounts for ~70% of revenues and grew 35% Y/Y in FY10.
Jefferies believes that the company should be able to leverage its print operations at Phoenix and Charlotte to drive greater scale. They anticipate that margins will be high single digit in 2011 and in the mid-teens in 2012. The firm is raising their 2011 estimates to $464M in revenue, $0.73 in EPS and $88M in EBITDA from $373M, $0.80 and $82M. They are raising their 2012 to $601.9M in revenue, $1.30 in EPS, and $125.1M in EBITDA.
For more ratings news on Shutterfly Inc. click here and for the rating history of Shutterfly Inc. click here.
Shares of Shutterfly Inc. closed at $43.03 yesterday.
The firm states that the Tiny Print acquisition strengthens SFLY's competitive position by adding a strong differentiated brand, it expands their market share in a rapidly growing segment, and positions the company to realize meaningful cost synergies over time. Also strategically the deal allows SFLY to consolidate its most comparable competitor and it will provide them with the capability to leverage its own print production and fulfillment to drive TP's margins materially higher. If successful, these can help accelerate growth in SFLY's core PPS, which accounts for ~70% of revenues and grew 35% Y/Y in FY10.
Jefferies believes that the company should be able to leverage its print operations at Phoenix and Charlotte to drive greater scale. They anticipate that margins will be high single digit in 2011 and in the mid-teens in 2012. The firm is raising their 2011 estimates to $464M in revenue, $0.73 in EPS and $88M in EBITDA from $373M, $0.80 and $82M. They are raising their 2012 to $601.9M in revenue, $1.30 in EPS, and $125.1M in EBITDA.
For more ratings news on Shutterfly Inc. click here and for the rating history of Shutterfly Inc. click here.
Shares of Shutterfly Inc. closed at $43.03 yesterday.
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