Goldman Sachs Lowers Numbers on Shutterfly (SFLY) After Q4 Warning

Goldman Sachs lowered estimates and its price target on Neutral-rated Shutterfly Inc. (NASDAQ: SFLY) from $29 to $27 after the company lowered Q4 guidance last week.

"While we expected a hyper-competitive environment to drive a weak holiday season for Shutterfly, extending into 2012, we are reducing our forward estimates to reflect the severity of the pricing landscape," the analyst comments.

They expect better-capitalized competitors like Snapfish (owned by HP (NYSE: HPQ) to continue using the photo category as a loss leader and newer entrants, like Minted.com, to price below cost, aggressively market through online advertising channels like search, and use flash sale format in hopes of building scale and potentially getting to an exit.

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 $23.43 yesterday.

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