Aegis Capital Assigns a Buy Rating on Shutterfly

By Jason Carr

In a report released yesterday, Victor Anthony from Aegis Capital assigned a Buy rating to Shutterfly (NASDAQ: SFLY), with a price target of $57. The company’s shares closed yesterday at $47.81.

Anthony commented:

“We believe, based on our own tracking, that Shutterfly weathered this holiday season, a critical one for them given the model transformation and competition from Amazon and Google, in relatively good shape (baring some third-party delivering issues). Shutterfly’s Consumer revenue growth gets less bad in 4Q17 and in the first half of 2018, and should return to growth beginning in 2H18. In the current quarter, Shutterfly brand mobile app downloads are up 52% YoY and 44% QoQ, and DAUs are up 130% YoY and 100% QoQ. Mobile represented 29% of Shutterfly brand revenues in 3Q17 and is likely to cross the 50% threshold by the end of 2018. While mobile is a tailwind for Shutterfly given that Photobooks and Calendars are both fully launched, SFLY noted that customers acquired through the mobile app spend a bit less than desktop customers but cost less to acquire.”

According to TipRanks.com, Anthony is a 5-star analyst with an average return of 14.5% and a 66.1% success rate. Anthony covers the Services sector, focusing on stocks such as Pandora Media, Alibaba Group, and EVINE Live.

Shutterfly has an analyst consensus of Moderate Buy, with a price target consensus of $52.20.

The company has a one-year high of $53.99 and a one-year low of $39.76. Currently, Shutterfly has an average volume of 645.2K.

Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock.

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Shutterfly, Inc. engages in the provision of digital personalized photo products and services. It operates through two segments: Consumer and Shutterfly Business Solutions.