Shutterfly's (SFLY) Kodak Gallery Deal Could Add At Least $0.10 in EPS - Baird
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Price: $50.97 --0%
Rating Summary:
4 Buy, 13 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 13 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Analysts are Baird were positive on Shutterfly Inc. (NASDAQ: SFLY) following news the company entered a deal to acquire Kodak Gallery assets for $23.8 million.
"While the deal will not close until approved by a bankruptcy court in early spring, we believe circumstances favor Shutterfly, and market consolidation has been one factor in our positive view of shares," analyst Colin Sebastian said.
He estimates that the Kodak Gallery's business generates between $50-$70 million in revenues, which implies a bid price of 0.25x-0.3x sales. The deal could add at least $0.10 to EPS on a full year basis.
"We see the deal as not only offering Shutterfly a healthy base of new customers at an attractive acquisition price, but also a group of photo enthusiasts that should adapt well to Shutterfly's platform and product offering, and present new cross-selling opportunities," he continued.
The firm maintained an Outperform rating and $32 price target.
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 $26.91 yesterday.
"While the deal will not close until approved by a bankruptcy court in early spring, we believe circumstances favor Shutterfly, and market consolidation has been one factor in our positive view of shares," analyst Colin Sebastian said.
He estimates that the Kodak Gallery's business generates between $50-$70 million in revenues, which implies a bid price of 0.25x-0.3x sales. The deal could add at least $0.10 to EPS on a full year basis.
"We see the deal as not only offering Shutterfly a healthy base of new customers at an attractive acquisition price, but also a group of photo enthusiasts that should adapt well to Shutterfly's platform and product offering, and present new cross-selling opportunities," he continued.
The firm maintained an Outperform rating and $32 price target.
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 $26.91 yesterday.
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