Canaccord Genuity Maintains a 'Hold' on Shutterfly Inc. (SFLY); Acquiring Tiny Prints and Raising Guidance

Canaccord Genuity maintains a 'Hold' on Shutterfly Inc. (NASDAQ: SFLY), PT increased to $44.

Canaccord analyst says, "Shutterfly announced that it has entered into an agreement to acquire Tiny Prints, Inc. for $333M, comprised of $141M cash and ~3.9M shares of SFLY (plus reserve of ~1.4M shares for vested/unvested employee equity awards). The company also modestly raised guidance for Q1. While the price paid seems somewhat rich, we believe that given Tiny Prints’ rapid growth, easily available cost synergies, and a higher value customer base, management is capable of creating value well beyond the purchase price. Should uncertainty around the transaction impact the stock, we would consider it a buying opportunity."

"We’re adjusting our estimates to reflect the strength in the core business. Our F2011 and F2012 revenue and PF EPS estimates move from $372.6M/ $1.19 and $450.4M/ $1.38 to $381.8M/1.16 and $462.9M/1.47. Our price target goes from $38 to $44, or 30x ’12E EPS."

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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