Canaccord Genuity Morning Coffee on Shutterfly (SFLY): Say Cheese!
Tweet
Share
E-mailGet Alerts SFLY Hot Sheet
Price: $50.97 --0%
Rating Summary:
4 Buy, 13 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 7
Rating Summary:
4 Buy, 13 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 7
Join SI Premium – FREE
Canaccord Genuity Morning Coffee on Shutterfly (Nasdaq: SFLY): Say cheese!
Shares of Shutterfly were flying high on Friday (gaining 16.5%, however, the stock has fallen back 4.2% this morning) after the company said it would purchase Eastman Kodak’s online photo services business for $23.8 million. Kodak said the deal followed a “stalking horse” bid - a starting bud that other bidders must surpass in a court supervised auction. One Wall Street analyst said, “By taking out the number three player with an estimated about $70 million in F11 revenues, Shutterfly will eliminate a sizable competitor and solidify its position as the largest player in online consumer print.” Currently Kodak’s offering sits behind Shutterfly and Hewlett Packard’s (NYSE: HPQ) Snapfish and has over 75 million users. Baird equity said, “The deal not only offers 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.” The brokerage believes Kodak’s Gallery business to add $50-70 million to Shutterfly’s top line.
Shares of Shutterfly were flying high on Friday (gaining 16.5%, however, the stock has fallen back 4.2% this morning) after the company said it would purchase Eastman Kodak’s online photo services business for $23.8 million. Kodak said the deal followed a “stalking horse” bid - a starting bud that other bidders must surpass in a court supervised auction. One Wall Street analyst said, “By taking out the number three player with an estimated about $70 million in F11 revenues, Shutterfly will eliminate a sizable competitor and solidify its position as the largest player in online consumer print.” Currently Kodak’s offering sits behind Shutterfly and Hewlett Packard’s (NYSE: HPQ) Snapfish and has over 75 million users. Baird equity said, “The deal not only offers 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.” The brokerage believes Kodak’s Gallery business to add $50-70 million to Shutterfly’s top line.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Blackstone (BX) to Acquire Tropical Smoothie Cafe
- Hibbett Sports (HIBB) Acquired by JD Sports Fashion for $87.50/sh or $1.1B
- First Busey (BUSE) PT Lowered to $24 at DA Davidson
Create E-mail Alert Related Categories
Analyst Comments, Mergers and AcquisitionsRelated Entities
Robert W BairdSign 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!
